Saudi Arabia on Pakistan Crisis: Saudi Arabia also played a big game with Pakistan, will not give unconditional financial aid
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Saudi Arabia’s finance minister said that we are taxing our people, we are expecting others to do the same. We want to help but we want you to play your part too.
The whole world is aware of the rough condition of Pakistan. Dependent on flour and other resources, Pakistan is begging sometimes with the World Bank and sometimes with the Arab countries in the hope of bailout. But Saudi Arabia has now given a big blow to Pakistan’s Prime Minister Shahbad Sharif and Army Chief Asim Munir. Saudi Arabia has indicated that it will no longer provide unconditional financial assistance to its allies in the future. This step has been taken by Saudi Arabia because of working towards strengthening its economy. It may be remembered that even before this, on several occasions, Saudi had helped Pakistan with billions of dollars, and had deposited billions of dollars in its foreign exchange reserves.
no unconditional financial aid
Saudi Arabia’s finance minister said the kingdom is changing the way it provides aid to its partners, moving away from first direct grants and unconditional deposits. Mohammed Al-Jadaan said at the World Economic Forum in Davos that the Kingdom, the world’s top oil exporter and an Arab powerhouse, is encouraging countries in the region to implement economic reforms. The minister said that we used to give grants and deposits directly without any conditions and we are changing this. We’re really working with the multilateral institutions that we need to see reform.
Saudi Arabia is working on a plan to strengthen the economy
Saudi Arabia’s Finance Minister said that We are taxing our people, we are expecting others to do the same. We want to help but we want you to play your part too. Saudi Arabia and other Gulf Arab states such as the United Arab Emirates and Qatar are increasingly turning to investments rather than direct financial aid. Earlier this month, Saudi state media reported that the kingdom could increase its investment in cash-strapped Pakistan to $10 billion from the $1 billion announced in August, as well as deposits in Pakistan’s central bank to $5 billion. can increase.
In June Saudi Arabia signed $7.7 billion deals with Egypt, including to build a $1.5 billion power plant, and said it intended to lead a $30 billion investment, creating a long-term The partner is facing a weak currency and a shortage of foreign exchange. The kingdom established companies in Egypt, Jordan, Bahrain, Sudan, Iraq and Oman to solicit up to $24 billion in investment there. Jadan said Riyadh saw global inflation coming early on and acted accordingly, which helped keep inflation in the kingdom at an average of around 2.6%.
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