Saudi Arabia & Pakistan to discuss extending term of $3bn loan

By Shilpa Annie Joseph, Official Reporter
  • Follow author on
Saudi Arabia
Representational Image

Saudi Arabia and Pakistan will discuss extending the terms of a $3 billion loan in order to help Islamabad’s struggling economy.

The statement came after a visit by new Pakistani Prime Minister Mr. Shehbaz Sharif to Saudi Arabia, where he met with Crown Prince Mohammed bin Salman.

The Gulf nation has long been an intelligence partner of Pakistan as well as a regular source of financial relief for successive governments, according to the reports.

A joint statement said that “the kingdom would continue to support the Pakistani economy and had discussed augmenting the $3 billion deposit with the central bank through term extension or otherwise.”

As per the statement, Saudi Arabia and Pakistan affirmed their stance to consolidate security and stability, and support the unity as well as independence of their countries. The two sides also agreed to give priority to political solutions that bring prosperity and progress to the region and its people.

During the visit, the two sides exchanged views on issues of mutual concern at the regional and international levels, and agreed on the importance to continue coordinate their positions in a way that serves their interests,

Further, the two sides agreed to continue exchanging support and coordination in international organizations and forums. They stressed “the importance of all countries’ commitment to the United Nations Charter and the principles of international law, adherence to the principles of good neighborliness, respect for the unity and sovereignty of states, non-interference in internal affairs, and striving to resolve disputes by peaceful means.”

In recent years, Saudi Arabia provided Pakistan with $4.2 billion of support in the form of the $3 billion loan deposited with the central bank as well as $1.2 billion in deferred oil payments.

Related: EDB reaffirms its financial commitment to SMEs and startups in UAE