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Good news: Saudi Arabia to deposit US $ 3 Billion into Pakistan's State bank

ghazi52

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KARACHI: Sharply recovering against the US dollar in the inter-bank market, the Pakistani rupee on Wednesday reached Rs172.78 against the greenback.

The development came after Saudi Arabia announced that it was depositing $3 billion in the State Bank of Pakistan (SBP) to help support its foreign reserves.

According to data released by the central bank, the local currency appreciated around 1.44% (or Rs2.49) to settle at Rs172.78 in the inter-bank market. The local currency had closed at an all-time low of Rs175.27 against the greenback on Tuesday.


Late on Tuesday, the Saudi Fund for Development had said it was depositing $3 billion in State Bank of Pakistan (SBP) to help support its foreign reserves.

The fund added that an official directive was issued to supply $1.2 billion to finance Pakistan’s oil products trade during the year.

The news was acknowledged by all financial markets as it positively impacted the foreign exchange reserves.

Moreover, Federal Minister for Energy Hammad Azhar confirmed that the Saudi fund has also generously announced for Pakistan an oil deferred payments facility of $1.2 billion per annum.


Analysts believe this will ease the uncertainty due to the energy crisis and costly imports of oil which has been the major reason behind currency depreciation.

The rupee had maintained the downtrend for the past five months. It has lost 13.46% (or Rs20.51) to date, compared to the 22-month high of Rs152.27 recorded in May.

The local currency had depreciated 9.67% (or Rs15.24) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
 

VCheng

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Are you implying that the FATF wouldn’t apply judgements on countries like Pakistan if we chose not to join? And why are you claiming that we’ve joined in the first place? We are neither members nor observers. As for APG... Is North Korea a signatory of the APG? If not, the how did it end up FATF blacklisted? You’re not making valid points here. And again, no idea why you’re trying lend credibility to this by talking about the APG.

Your assertion is wrong, and the following insinuation is also wrong. Their judgement applies to us whether we choose it or not, all we can do is attempt to align ourselves with their legal and financial standards on AML/CTF. Hence my earlier comment.
I am not implying anything. Clearly, FATF has absolutely NO sanctioning authority. Do you think the present Saudi generosity would be any different if Pakistan were or were not on one list or another with FATF? Is Chinese protection of the North Korean regime any different because of any FATF declarations?

Thus, the only reason FATF actions can have any effect on Pakistan is because we choose to let them do so by our participation and by our feeble minded attempts to follow their assertions, just like the guy who is stopped by the chowkidar upon asking to enter the Secretariat when all others walk in, simply because they did not bother to ask.
 

Jungibaaz

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I am not implying anything. Clearly, FATF has absolutely NO sanctioning authority.
I never denied that. So we can indeed agree that the whole APG thing irrelevant?

And even if they have no sanctioning authority, their grey listing is not nothing. Even the kids (interns) who join my organisation for summer are taught, as a part of their regulatory training, about FATF lists and how they are used to screen certain transactions. A country like Pakistan regrettably presents a complication in transactions compared to a country that’s not on the list.

So sure, it’s not an authority that’s able to sanction, but so what?

Do you think the present Saudi generosity would be any different if Pakistan were or were not on one list or another with FATF? Is Chinese protection of the North Korean regime any different because of any FATF declarations?

Thus, the only reason FATF actions can have any effect on Pakistan is because we choose to let them do so by our participation and by our feeble minded attempts to follow their assertions, just like the guy who is stopped by the chowkidar upon asking to enter the Secretariat when all others walk in, simply because they did not bother to ask.
Sure, going by that logic nobody is compelled to do anything really. I don’t have to pay my taxes if I say the laws don’t apply to me.

The US (or any other major power) saying this in the context of foreign policy to excuse themselves is a lot like an Italian American mobster saying “I’m not saying you have to pay me protection money, I’m just saying that if you didn’t, someone might beat you with a bat.”
 

nahtanbob

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Hardly good news. This is just financing that can only be used to buy Saudi oil. Money will have to be repaid with interest.

If relationship was strong, we would be getting aid.
Find out if any other "brotherly" nation even loans out money for purchasing oil
Why doesn't Pakistan completely shun and abandon IMF as well as FATF and aligns itself permanently with China, Turkey and Russia.
I understand why you would mention China. What have Russia and Turkey done for Pakistan ?
 

VCheng

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I never denied that. So we can indeed agree that the whole APG thing irrelevant?

And even if they have no sanctioning authority, their grey listing is not nothing. Even the kids (interns) who join my organisation for summer are taught, as a part of their regulatory training, about FATF lists and how they are used to screen certain transactions. A country like Pakistan regrettably presents a complication in transactions compared to a country that’s not on the list.

So sure, it’s not an authority that’s able to sanction, but so what?


Sure, going by that logic nobody is compelled to do anything really. I don’t have to pay my taxes if I say the laws don’t apply to me.

The US (or any other major power) saying this in the context of foreign policy to excuse themselves is a lot like an Italian American mobster saying “I’m not saying you have to pay me protection money, I’m just saying that if you didn’t, someone might beat you with a bat.”
Applying concepts from the personal domain to international geopolitics is simply invalid.
 

Pak Nationalist

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Source: https://www.spa.gov.sa/2298917

اقتصادي / المملكة تدعم الاقتصاد الباكستاني بوديعة في البنك المركزي الباكستاني من خلال الصندوق السعودي للتنمية

الرياض 20 ربيع الأول 1443 هـ الموافق 26 أكتوبر 2021 م واس
أعلن الصندوق السعودي للتنمية عن صدور التوجيه الكريم بإيداع مبلغ ثلاثة مليارات دولار لدى البنك المركزي الباكستاني لمساعدة الحكومة الباكستانية على دعم احتياطاتها من العملة الأجنبية ودعمها في مواجهة تداعيات جائحة كورونا.
وأضاف الصندوق، أنه بالإضافة إلى ذلك فقد صدر التوجيه الكريم بتمويل تجارة المشتقات النفطية بمبلغ إجمالي قدره مليار ومئتي مليون دولار خلال السنة.
وبين الصندوق أن هذه التوجيهات الكريمة تؤكد موقف المملكة المستمر في دعم اقتصاد جمهورية باكستان الشقيقة.
// انتهى //
21:27ت م
0222

This is news that we should be ashamed of. The need for loans to sustain ourselves is a matter of shame. National humiliation has gotten to a stage where securing multilateral and bilateral loans is dubbed as if quantum leaps in exports have been made. PS. this would again give Saudis leverage over us. Remember how they prematurely called their last debt despite the fact that IMF had agreed to bail us out only if Saudis and Emaratis would not ask us to repay till we are in the IMF program.
 

Adecypher

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In return for EXACTLY what? IF someone shed a detailed light on that, that would be very helpful to understand the internal dynamics...

Another reason to be careful here is to recall that in 2020 SA have asked Pakistan to return $ 1 Billion of $ 3 Billion soft loan JUST BECAUSE of the similar statement (below) from our beloved and most respected FM SMQ:

"Dekhiyey hum kitni baar OIC se arz karchukay hein key ye humaari dereena khwahish hey key Council of Foreign ministers ka ijlaas forun bulaya jaye - lakin humari koi sunta hi nahi hey :azn:"

I mean what IF in future FM SMQ or anyone else in hukumat ki koi baat SA ko buri lag jaye - and they will again tell us - merey peshey waapis karo...???


Also, note that at that time China have come to Pakistan's rescue.
 
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HAIDER

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What has Pakistan agreed to in return? Must be something related to Iran or Afghanistan.
As long as we buy oil from Saudi Arabia, all is well. 3 billions is reserve to control the sky rocketing price of dollar. Lower the price of dollars to make payments easily. We are happy and Saudi have buyers. It's all business. Today oil barrel price is 84 dollars, during Trump era it was almost free. Some analyst predict it touch 100 dollars. OPEC cut the production to increase the profit margin.


U.A.E. Pushes to Produce More Crude, Creating OPEC Deadlock
U.A.E. wants to pump more now, so it can invest in diversification before oil demand diminishes
I'm sure something will be given in return.
Regardless, I will say this is appreciated and we thank Saudi.
Some security pact. If you listen IK speech, his whole emphasis was on KSA security issue. But .... no talk about ask KSA support for Kashmir issue .. which was missing in his speech.
 

BATMAN

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I'm sure something will be given in return.
Regardless, I will say this is appreciated and we thank Saudi.
all fe sabil Allah.

As we see now, Imran Khan did not even issued a condemnation for missile and drone attacks on Saudi Arabia by axis of evil.
 

BATMAN

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Some security pact. If you listen IK speech, his whole emphasis was on KSA security issue. But .... no talk about ask KSA support for Kashmir issue .. which was missing in his speech.
All usual hypocrisy of Imran Khan.
A person, who is not willing to condemn terrorism against Saudi Arabia, is not capable to make any positive pact with Saudi Arabia!
 

BATMAN

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A friend in need is a friend indeed. Pakistanis have recently been disrespectful of the saudis, without seeing their part of the picture. This should show the true patriots, who is the friend. After all the hatred, they help us while iran, after all chamchageeri still backstabs us.
Saudi position is quite well established... while meeting greetings of Imran Khan cabinet members with IRGC is no secret.
I appreciate the help but we should focus on fixing the economy...
agree, but that's not going to happen, because all of the aid and IMF loans are going to be spent on pre-poll rigging.
 

Tomcats

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Be it IMF/WB or SA/China, we only come to know of the terms and conditions when something goes wrong, instead of knowing right from gitgo.
Oh we know alright, it's just that procrastination takes precedent as there are more pressing 'politics' at hand.
 

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