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Will Saudi support reduce inflation in the country?

وزیراعظم عمران خان Prime Minister Imran Khan

The latest visit of Prime Minister Imran Khan’to Saudi Arabia has started bearing fruit as the kingdom had announced to deposit $3 billion in the State Bank of Pakistan.

The oil-rich state will also finance Pakistan’s refined petroleum product worth $1.2 billion. The development will help Pakistan improve its foreign reserves and ease other financial difficulties.

Taking to Twitter, Prime Minister Imran Khan thanked Saudi Crown Prince Mohammed bin Salman for providing financial support to Pakistan.

He said that Saudi Arabia had always stood by Pakistan in the difficult times and is still with the country when the world is facing rising prices.

Federal Minister for Energy Hamad Azhar also said that Saudi Arabia had announced to finance $1.2 worth of oil to Pakistan annually and will also deposit $3 billion in the State Bank of Pakistan.

He said that the Saudi Development Fund had generously announced for Pakistan an oil deferred payments facility of $1.2 billion per annum and deposit $3 billion deposit with the State Bank.

The federal minister said that the Saudi supports would help ease the pressure on Pakistan’s trade and foreign exchange accounts due to global price increases.

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Analysts said that Saudi Arabia has once again helped Pakistan in its difficult times and now Prime Minister Imran Khan taking full advantage of this assistance should formulate economic policies with a new strategy to curb rising inflation in the country.

They said that inflation is at an all-time high in the country with more than 50 percent of the population forced to live below the poverty line.

It should be noted that this is not the first time that Saudi Arabia has provided assistance to Pakistan in its difficult times. Saudi Arabia had provided $1.5 billion to Pakistan in 2014 to maintain the balance of foreign payments during a severe foreign exchange shortage.

 

 

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