New Delhi: Saudi Arabia and Qatar pledged $5 billion in financial assistance to Pakistan, according to the Ankara-headquartered Anadolu Agency, which cited Pakistani officials.
The assistance comes as Pakistan is set to repay a $3.5 billion debt to the United Arab Emirates by the end of April, following a request from Abu Dhabi for immediate settlement.
Pakistani officials described the repayment as a matter of national dignity. “Our brotherly country requested the repayment, and national dignity could not be compromised for financial considerations,” a statement quoted in the report said.
Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan met with Pakistani Prime Minister Shehbaz Sharif Friday evening in Islamabad to discuss economic cooperation and regional developments.
The meeting, which included Pakistan Foreign Minister Ishaq Dar and Chief of Army Staff Field Marshal Asim Munir, did not result in formal agreements. However, officials stated that discussions on financial support had been initiated previously between the finance ministries of the two countries.
The infusion of funds from Riyadh and Doha is expected to help Islamabad navigate pressures on its reserves, which currently stand at roughly $16.4 billion, while also maintaining external payments.
Pakistan had also requested additional financial assistance, including an expansion of existing cash deposits and an extension of its oil financing facility, which is set to expire later this month.
The expedited repayment is partly linked to escalating regional tensions, which have influenced Abu Dhabi’s reluctance to roll over the loans for longer periods.
Earlier this year, the UAE extended two $1 billion loans by only a month, despite Pakistan’s request for a two-year extension at lower interest rates.
Meanwhile, Pakistan has also deployed fighter jets and military personnel to Saudi Arabia under a mutual defence pact signed last year.
Pakistani aircraft and support personnel arrived at King Abdulaziz Air Base in the eastern province of Saudi Arabia, according to the Saudi defence ministry. Meanwhile, reports indicated that Islamabad has sent 13,000 troops and 12 to 18 fighter jets.
Pakistan could deploy as many as 50,000 soldiers, along with additional aircraft, after the US-Iran talks in Islamabad failed to produce an agreement.
(Edited by Madhurita Goswami)