MINISTER for Information and Broadcasting Fawad Chaudhary revealed on Thursday that all legal arrangements have been finalized for receipt of deposits worth $3 billion from the brotherly country of Saudi Arabia within the ongoing week.
The significant inflows from Saudi Arabia would surely help the country shore up its dwindling foreign exchange reserves.
Pakistan and Saudi Arabia have had a strategic relationship for decades and the two countries steadfastly support each other during periods of trials and tribulations.
While Saudi Arabia provided much-needed financial support to Pakistan at critical junctures and periods of economic volatility, Pakistan always extended meaningful security and defence cooperation to Riyadh.
Diplomatic circles point out that since 1960, Pakistan has received more aid from Saudi Arabia than any other country outside the Arab world and that Pakistan almost never paid its loans or made payments for oil supplied on a deferred payment basis.
In fact, Saudi Arabia has always been willing to deepen and diversify its relations with Pakistan and an economic and cultural package negotiated by the then Prime Minister Shahid Khaqan Abbasi in 2018 is an example of that as it promoted social and cultural exchange programmes, increased the quota for the Pakistani workforce in construction projects in the kingdom and secured Saudi investment for re-gasified liquefied natural gas plants, an oil refinery, and alternate energy.
Later, Saudi Arabia also announced a significant investment plan for Pakistan but unfortunately it could not be implemented properly due to lacklustre attitude on our part.
Apart from $3 billion deposits, Saudi Arabia is also providing $1.2 billion oil facility on deferred payment which will surely provide fiscal space to the country and the savings accruing due to this facility can be spent to meet other pressing needs.
There is also another important development: Saudi Arabia has allowed Pakistani travellers to directly enter the Kingdom starting December 1, 2021, without spending 14-day quarantine in a third country.
As a result of this decision, thousands of Pakistanis would be able to travel to the holy land for Umra and Ziarat.
The KSA is home to the largest number of Pakistani workforce (one and a half million) but there is still scope for export of more manpower as the Kingdom has embarked upon a comprehensive development programme including construction of new cities and this aspect should be the top priority.
