Saudi Arabia pledges $3bn to Pakistan, defers oil payments

In this handout photograph released by Pakistan’s Press Information Department (PID) on October 23, 2018, Saudi King Salman meets with Pakistan’s Prime Minister Imran Khan during a meeting in Riyadh. Saudi Arabia. (AFP)
Updated 24 October 2018

Saudi Arabia pledges $3bn to Pakistan, defers oil payments

  • It was agreed Saudi Arabia will place a deposit of $3 billion for a period of one year as balance of payment support: statement
  • Pakistan is seeking foreign aid to help plug a massive budgetary gap which the Pakistan prime minister has blamed on the mismanagement of the previous administration

RIYADH: Saudi Arabia has pledged $3 billion in support to Pakistan and allowed for deferred oil payments to help stave off a budget crisis.

The deal came as Pakistani Prime Minister Imran Khan attended the opening of the Future Investment Initiative (FII) in Riyadh on Tuesday.

Earlier Khan met with King Salman and Crown Prince Mohammed bin Salman to discuss bilateral issues. It was his second visit to the Kingdom in just over a month.

“It was agreed Saudi Arabia will place a deposit of $3 billion for a period of one year as balance of payment support,” Pakistan’s Foreign Ministry said in a statement.

“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. This arrangement will be in place for three years, which will be reviewed thereafter.”

During his address to the gathering of global business executives, Khan also confirmed that Pakistan was in talks with the International Monetary Fund (IMF) for a new bailout.

Pakistan is seeking foreign aid to help plug a massive budgetary gap which the Pakistan prime minister has blamed on the mismanagement of the previous administration. During his election campaign, the former cricketer vowed to create 10 million jobs and establish an “Islamic welfare state.”

After a consultative visit last month, the IMF had warned that Pakistan needed to quickly secure “significant external financing” to avert a crisis. 

Saudi Arabia and Pakistan have also discussed potential investment in mineral resources in Balochistan, the largest of Pakistan’s four provinces which borders Iran and Afghanistan.

Further discussions were held about a refinery project in Pakistan, the Finance Ministry said in the statement.

Pakistan’s external balance of payments represents one of the biggest challenges facing Khan.

The country’s current account deficit has ballooned as its central bank’s foreign reserves dropped to about $8.1 billion in October.

That was barely enough to meet the country’s sovereign borrowings between now and the end of the year.

The IMF expects Pakistan’s economic growth to slow to about 4 percent in 2019.

Pakistan is seeking to attract increased inward investment to help shore up its finances and Khan used the event as platform to talk about opportunities in sectors such as tourism, minerals, coal and gas exploration.

He also highlighted what he said were the successes of Pakistan in the fight against terrorism, which has brought peace and stability to the country, and pointed to the significance of the China-Pakistan Economic Corridor (CPEC).

China has become an increasingly high-profile investor in Pakistan as Beijing pushes ahead with major projects such as the CPEC.


Abdulrahman Al-Jadhai, CEO of Al-Elm Information Security Co.

Dr. Abdulrahman Al-Jadhai
Updated 13 min 23 sec ago

Abdulrahman Al-Jadhai, CEO of Al-Elm Information Security Co.

  • Al-Jadhai gained a Ph.D. in computer science from the University of Pittsburgh, Pennsylvania

Dr. Abdulrahman Al-Jadhai has been CEO of Al-Elm Information Security Co. since 2012.
The company offers a wide range of ready-made and customized digital solutions in areas ranging from consulting to training and support.
It recently signed a share purchase agreement to acquire 100 percent of the Saudi Company for Exchanging Digital Information (Tabadul) from the Public Investment Fund (PIF).
Al-Jadhai believes the deal is an important milestone for the company as it expands its products and digital custom solutions in the transport and finance sectors.
It also offers an opportunity to develop national logistics services that meet current market requirements and the need of beneficiaries, he said.
Al-Jadhai is a board member of several institutions in the Kingdom, chair of the advisory board of the Central First Health Cluster in Riyadh region, and a board member of the Taibah Valley company.
He joined Al-Elm in 2006 as a manager where he served for more than two years before becoming strategy and planning manager in 2008, a position he held for three years until 2011.
Later, he served as e-services manager for less than a year between 2011 and 2012.

He also worked at the Saudi Telecom Co. as an infrastructure manager between 2002 and 2005.
Al-Jadhai gained a Ph.D. in computer science from the University of Pittsburgh, Pennsylvania. He obtained a master’s degree in the same major at Michigan State University.
He received a bachelor’s degree in computer engineering from King Saud University in 1989.