In a timely financial boost, Saudi Arabia has deposited $2 billion into Pakistan's central bank. This significant contribution comes as Pakistan awaits a crucial decision from the International Monetary Fund (IMF) regarding a $3 billion bailout package. Finance Minister Ishaq Dar confirmed the deposit, emphasizing that it's not a loan but rather a reinforcement of Pakistan's foreign exchange reserves, which will remain with the central bank for at least a year.

This influx of funds is particularly important as Pakistan grapples with economic challenges. With foreign exchange reserves recently dwindling to $9.6 billion – barely enough for a month's worth of imports – the Saudi deposit brings the total to $11.6 billion. Dar expressed gratitude to Saudi Arabia and assured the nation that this financial support will pave the way for economic recovery and growth.

Prime Minister Shehbaz Sharif echoed this sentiment, thanking the Saudi leadership and highlighting the deposit as a sign of confidence in Pakistan's economic turnaround efforts. He reaffirmed Pakistan's commitment to implementing necessary measures for economic improvement. Sharif also acknowledged Saudi Arabia's crucial role in securing the IMF deal during a meeting with the Saudi ambassador.

The IMF's executive board is scheduled to meet and is anticipated to approve the $3 billion loan, offering much-needed relief to Pakistan's struggling economy. This nine-month agreement replaces a previous bailout deal signed in 2019. The country has faced significant economic setbacks recently, including devastating floods and the impact of global commodity price fluctuations. The IMF bailout is expected to provide critical support in navigating these challenges.