Pakistan Prime Minister Imran Khan has described a $6 billion Saudi bailout package as a "big relief" for the country and vowed to mediate between Riyadh and Yemen to end their ongoing conflict.
'Yes, We are going ahead into program negotiations with (IMF) in first week of November, ' Noor Ahmed, spokesman for Pakistan's finance ministry, told Reuters in a text message.
The high-profile economic forum in Saudi Arabia is the kingdom's first major event on the world stage since the killing of writer Jamal Khashoggi at the Saudi Consulate in Istanbul earlier this month.
Foreign currency reserves, now at a four-year low, are equivalent to less than two months' imports and barely enough to allow debt repayments for the rest of the 2018.
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Minister for Information and Broadcasting Chaudhry Fawad Hussain has said Prime Minister Imran Khan is an extraordinary leader of Pakistan.
Cash-strapped Pakistan has already announced plans to cut a United States dollars 8.2 billion railway project between the Karachi and Peshawar the biggest under the CPEC by about USD 2 billion to reduce the debt burden.
The benchmark KSE index of the Pakistan Stock Exchange gained 1,462 points or 3.85 percent in intra-day trading to push the index to 39,176 points.
"It was also agreed that a one year deferred payment facility for import of oil, up to $3 billion, will be provided by Saudi Arabia". Islamabad has already asked the International Monetary Fund to open negotiations for the country's second potential bailout in five years. "Islamabad has secured badly needed cash that few states were willing to provide", he said.Mosharraf Zaidi, a columnist and political analyst said that the deal must be seen in the context of Pakistan having to delicately manage complex regional dynamics "and an insatiably hungry youth-based economy."This is a fine start".
The $6 billion total exceeds forecasts by analysts and will likely reduce the size of any bailout Pakistan it receives from the International Monetary Fund (IMF), with whom it is now engaged in talks on a rescue package.