ISLAMABAD, March 9: Saudi Arabia is expected to announce a multi-billion dollar aid package for Pakistan in the form of supply of oil and fertiliser on deferred payment and securitisation against workers’ remittances during the March 27 meeting of foreign ministers of the Friends of Pakistan group in Tokyo, informed sources told Dawn.

This was said by Adviser to the Prime Minister on Finance Shaukat Tarin when he returned on Monday from a two-day visit to the kingdom. His visit was part of the government’s lobbying for financial assistance from friendly states. Mr Tarin also met Saudi finance minister, Dr Ibrahim bin Abdul Aziz Al Assaf in Riyadh.

A finance ministry press release issued here says both officials discussed issues relating to Pakistan’s economic reforms and development and the role of the Saudi Development Fund to support development projects in Pakistan.

They exchanged views on the turmoil in international capital markets and the global economic recession and discussed ways and means to strengthen the South Asian states’ economies with special emphasis on Muslim countries.

Mr Tarin also covered various subjects like securitisation of workers’ remittances, alleviation of poverty and enhancing trade volume, especially export of agricultural products to Saudi Arabia.

Both sides also discussed the kingdom’s support for oil supply, promotion of investment and enlisting Pakistani firms in the construction of mega projects in Saudi Arabia.

Mr Tarin also met IDB chief Dr Ahmed Ali, in Jeddah. Both officials talked about closer cooperation between the two countries’ banking sectors.

It was agreed that Muslim countries’ financial institutions should harmonise efforts to build stronger economies of Muslim states in South West Asia. The meeting was also attended by the Saudi Arabia Monetary Agency (SAMA) governor and Pakistan’s acting ambassador to Saudi Arabia.

Japan to do more

Meanwhile sources in the Finance Ministry said Japan believed the IMF package for Pakistan was not enough and was willing to help the country.

Islamabad had already started urging Japan to set up exclusive economic zones in Karachi and Gwadar and help develop the country’s agriculture, manufacturing and energy sectors.

Pakistan is not expecting any immediate direct monetary help, but will present a list of projects that can be financed by Tokyo.
Tags: