Saudi Arabia became the messiah for Pakistan which was on the verge of poverty and brought billions of dollars into its kitty.

News India Live, Digital Desk: Saudi Arabia has once again emerged as a ‘troubleshooter’ for Pakistan, which is burdened with economic crisis and huge debt. Saudi Arabia has announced huge financial assistance to support Pakistan’s sinking economy. The Saudi government has decided to provide financial assistance of $3 billion to Pakistan and also to extend the period of deposits of $5 billion. After this big relief, the Shahbaz Sharif government in Islamabad has taken a sigh of relief, which was struggling with the fear of default for the last several months.

Pakistan’s foreign exchange reserves will get ‘oxygen’

This financial package given by Saudi Arabia will have a direct impact on Pakistan’s falling foreign exchange reserves. At present the situation in Pakistan is such that it had funds left only for a few weeks of imports. The deposit of 5 billion dollars to be deposited by Saudi Arabia in the Central Bank will help in handling the falling value of Pakistani rupee. Experts believe that without this help, it would have been almost impossible for Pakistan to meet the conditions of the International Monetary Fund (IMF) and get the new installment.

Big decision of King Salman and Crown Prince

This important announcement has been made on the instructions of Saudi Arabia’s King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman. According to the report, Saudi Arabia has not only helped with cash but also supplied oil at concessional rates and promises of investment. Pakistan Prime Minister Shahbaz Sharif has expressed gratitude to the Saudi leadership for this generosity. He said that Saudi Arabia has proved as always that it is Pakistan’s most reliable brother in difficult times.

Will Pakistan be able to get out of the debt trap?

Although this help from Saudi Arabia may provide immediate relief to Pakistan, the long-term crisis still persists. Pakistan’s total foreign debt has reached dangerous levels relative to its GDP. International experts say that unless Pakistan makes drastic reforms in its internal policies and improves its image on issues like terrorism, foreign aid will only work as a ‘Band-Aid’. At present, this booster dose of Saudi has given Pakistan some more time to avoid bankruptcy.