Pakistan, whose economy has been deteriorating, has once again seek rescue from the Gulf nations who never fail to financially support the struggling country in a way or another.
Pakistan and Saudi Arabia
During his latest visit to Saudi Arabia, Pakistani Prime Minister Shehbaz Sharif managed to secure around $8 billion, Indian local media reported.
The Saudi package includes doubling of the oil financing facility, additional money either through deposits or Sukuks and rolling over of the existing $4.2 billion facilities, The News newspaper reported. The report also mentioned that "technical details are being worked out and it will take a couple of weeks to get all documents ready," citing top official sources privy to the development.
It's worth noting that the Kingdom provided $3 billion deposits to the State Bank of Pakistan in December 2021, and also provided the nation with $100 million to procure oil after the Saudi oil facility was operationalized in March 2022.
Under the PTI-led regime headed by ex-Prime Minister Imran Khan, The oil-rich Gulf nation provided a package of $4.2 billion, including $3 billion deposits and a $1.2 billion oil facility for one year and linked it with the IMF programme.
Pakistan and UAE
After his visit to Saudi Arabia, PM Shehbaz Sharif visited the UAE on Saturday. With his interview with Khaleej Times he emphasized on the fact that Pakistan and UAE will increase its cooperation on regional and international issues to bring stability and prosperity in the region.
The Prime Minister met His Highness Sheikh Mohamed bin Zayed Al Nahyan, where they both discussed the ways to strengthen the relations between the two countries.
In April 2021, the UAE has extended the term of $2 billion interest-free loan to Pakistan made in January 2019, in an attempt to help the country's economy.
Pakistan and Kuwait
The recent financial support from Kuwait comes from the private sector. Kuwait-backed units are planning to invest $750 million in Pakistan projects, Bloomberg reported.
Mohammad Al Fares, chairman at Pakistan Kuwait Investment Co. told the media outlet that Kuwait Investment Authority’s Enertech Holding Co. and Pakistan Kuwait Investment Company have applied for a digital bank license and proposed a hydrogen plant and two smart cities. In addition, the two entities are already working on a $200 million water pipeline project.
