SAUDI Arabia has always come up with necessary economic support for Pakistan in difficult times.
At a time when the country is facing tough situation due to the soaring energy and commodity prices in the international market, the Kingdom has provided massive $ 4.2 billion dollars of financial support to Pakistan for a period of one year which indeed will provide much needed cushion to the economy and build up the foreign exchange reserves.
The very impact of Saudi package on the market was forthwith. The rupee staged a handsome recovery and appreciated by Rs 2.49 to Rs 172.8 against the US dollar in the interbank market.
It was the highest day-on-day recovery since April last year. Moreover, investor sentiment revived in all markets including financial, fixed income and equity segments.
We understand that the continued recovery of the rupee will lead to check current inflationary trends and bring down the prices of essential commodities. The revival of IMF loan facility will have further positive impact.
It is absolutely clear that the package was agreed upon during Prime Minister Imran Khan’s recent visit to the Kingdom and meeting with Saudi Crown Prince Mohammad Bin Salman.
The KSA once again proved through this gesture that Pakistan holds a special place in the hearts of Saudis.
The people of Pakistan have always shown their great love and affection to the Saudi leadership for being the custodian of the two holy mosques.
Given these bonds, we have repeatedly been stressing in these columns that the two countries must focus on developing a long-term strategic economic partnership by promoting cooperation in diverse fields of economy from agriculture to industries, Information Technology and energy. The Saudi package is really a welcome step which will prove to be a breather for our economy.
ut we should go beyond seeking aid from the brotherly country to attracting its investment in important sectors to put the economy on such strong footings where we are not required to spread begging bowl before anybody.
The next step for our authorities should be engage meaningfully with the Saudi counterparts in order to make forward movement to realize the investment portfolio of $ 20 billion announced by the Saudi Crown Prince during his visit to Pakistan back in February 2019.
