Pakistan Secures $6 Billion Aid Package From Saudi Arabia

  • PM Imran Khan has voiced reluctance to turn to IMF for bailout
  • Pakistan’s key stock index advances after package signed

Imran Khan, center, attending the opening ceremony of the Future Investment Initiative conference taking place in Riyadh.

Photographer: Fayez Nureldine/AFP via Getty Images
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Pakistan said Saudi Arabia agreed to a $6 billion support package to bolster Islamabad’s dwindling finances following a second visit by Prime Minister Imran Khan to Riyadh seeking aid.

Saudi Arabia will deposit $3 billion directly with Pakistan “as balance of payment support,” while another one-year deferred payment facility of up to $3 billion for oil imports was agreed, according to a memorandum of understanding signed by both nations on Tuesday. “This arrangement will be in place for three years, which will be reviewed thereafter,” Pakistan’s Finance Ministry said in a statement. Pakistan’s key stock index jumped 3.8 percent on Wednesday and the rupee gained as much as 1 percent against the dollar.