Moments in history when Saudi Arabia extended helping hand to Pakistan
PM Imran Khans visit to Saudi Arabia has resulted in significant understandings
The relations between Saudi Arabia and Pakistan have been developed on the bases and strong bond of Islam. A brilliant relationship between two Muslim states is visible in the religious and cultural fields.
As Pakistan is facing financial crisis, a delegation in Saudi Arabia, headed by Prime Minister of Pakistan Imran Khan, to hold the talks with Saudi leadership has told the nation “Good News” on Tuesday night that Saudi Arabia has offered financial assistance to deal with Pakistan s financial crisis, but it was not first time.
Earlier, on May 28, 1998, responding to New Delhi s five nuclear explosion, Islamabad carried out five nuclear test at Chaghi, in the province of Baluchistan, however, The US had imposed the economic sanctions on Pakistan in the reaction which resulted some severe financial crises in fresh nuclear state. There was so much pressure on the country s reserves that the government banned the dollar withdrawal from private banks.
However, in this situation, when others countries and even International Monetary Fund (IMF) had showed their reluctance to help Pakistan because of US sanctions, Saudi Arabia had agreed that one year deferred payment facility for import of oil, up to USD 3 Billion, would be provided.
Similarly, in 2014, Pakistan needed foreign exchange to maintain the balance of payments, Saudi Arabia had given $ 1.5 billion to Pakistan, which was used to improve exchange reserves.
However, a series of oil on deferred payments released in 1998 by Riyadh had been continued for many years. To avoid American wrath, Saudi Arabia decided to provide the oil to Pakistan on deferred payments.
Similarly, in 2014, $ 1.5 billion was declared as grant . But the experts say that Pakistan did not even pay for the rest.
On October 23, 2018, coming to Pakistan’s rescue amid its dwindling economic situation, Saudi Arabia has agreed to provide Pakistan US$3 billion for one year as balance of payment support.
"PM Imran Khan’s visit to Saudi Arabia has resulted in significant understandings between Pakistan and Saudi Arabia," the Foreign Office stated in a press release.
An MoU was signed by Finance Minister Asad Umar and his Saudi counterpart under which Riyadh will place a deposit of US$3 billion for a period of one year as balance of payment support
On the other hand, it was also agreed that a one year deferred payment facility for import of oil, up to US$3 billion, will be provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter.
Moreover, Saudi Arabia has confirmed its interest regarding investing in a petroleum refinery in Pakistan. An MoU will be signed after obtaining cabinet approval.
Riyadh has also expressed interest in development of mineral resources in Pakistan. For this purpose, the federal government and the government of Balochistan will consult, following which a delegation of Saudi Arabia will be invited to visit Pakistan.
The agreements between the two countries were signed during a visit by Prime Minister Imran Khan to Riyadh on the invitation of the Custodian of the Two Holy Mosques, where he met King Salman bin Abdulaziz and Crown Prince Muhammad bin Salman.
Khan also attended a Saudi Arabian investment conference where the newly minted leader launched a charm offensive targeting potential investors as Pakistan seeks to secure funds.
In a meeting with The Crown Prince, the Prime Minister of Pakistan has suggested to reduce visa fee for Pakistani workers, which is a significant step towards enhancing Pakistan’s workforce in Saudi Arabia, as well as facilitating travel of people from both countries.
During the visit, the Prime Minister had detailed bilateral discussions with King Salman bin Abdul Aziz and Crown Prince Muhammad bin Salman.
