Saudi debt decision reduce Pakistan’s problems
Islamabad, September 21, 2022 (PPI-OT):The Pakistan Economy Watch (PEW) on Wednesday said the rollover of debt by Saudi Arabia will reduce the problems of Pakistan and improve the confidence of investors. The extension in the return period of three billion dollars kept in Pakistan by Saudi Arabia may also reduce the speed of fall of the rupee, it said.
Pakistan received this amount on November 2021 and was supposed to return it on December 5 but now the period of return has been extended by one year which is a good decision by a friendly country, said Brig. (Retd) Aslam Khan, Chairman PEW.
In a statement issued here today, he said that Pakistan’s foreign exchange reserves are currently eight and a half billion dollars, which are only enough for forty days of imports, which is the main reason for the pressure on the rupee.
Aslam Khan said that if China and the United Arab Emirates also renew their loans, Pakistan’s woes, which have been marred by extreme conditions, high oil and commodity prices, floods and political instability, could ease. Floods have rendered all targets of the government and IMF irrelevant but lender is still silent on this important issue which is adding to the anxiety of policymakers, he said.
He said that wheat sowing time is approaching and if the flood water does not recede, the sowing will be affected, which may lead to a food crisis in the country. In the present situation, wheat hoarders need to be dealt with as strictly as possible while rehabilitation of flood-affected people needs to be given top priority.
For more information, contact:
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad