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Published 06 Nov, 2008 12:00am

Saudi response ‘positive’ to Pakistan’s requests: Tarin

ISLAMABAD, Nov 5: Adviser to Prime Minister on Finance Shaukat Tarin has said that Saudi Arabia has assured to provide all possible financial assistance to Pakistan.

However, he gave no specific details.

Talking to PTV from Riyadh on Wednesday, he said the assurance was given during a one-to-one meeting between King Abdullah bin Abdul Aziz and President Asif Ali Zardari.

Mr Tarin said that the matter would be finalised at a meeting with the Saudi finance minister upon his return from abroad.

Answering a question, he said that a number of issues had been discussed with the Saudi government and its response on each and every issue was ‘positive’.

Mr Tarin said that efforts would be made to export more manpower to Saudi Arabia.

He said Pakistan would decide in the next few days if it would go to the IMF for a loan. “We’ll analyse all the options in the next few days and whatever is in our best interests we’ll adopt,” he said.

Pakistan is hoping to avoid an IMF programme, which entails painful conditions, by securing help from allies and other multilateral lenders.

Before his departure, Mr Zardari said he would seek the relief of deferred payment for oil imported from Saudi Arabia. Pakistan’s annual oil bill had risen to $12 billion from $3 billion in five years, he said.

Mr Tarin said King Abdullah had responded “positively” to the request on deferred oil payment.

“Everything was put on the table by Mr President and their attitude was positive towards everything,” he said.

“Now details have to be finalised but this should be taken as they have an intention to help Pakistan economically.”

The kingdom has given the facility of deferred payment to Pakistani in the past, but diplomats say that donors, including Saudi Arabia, want to see the government reach an agreement with the IMF before deciding to offer support.

Pakistan imports about 82 per cent of its crude oil from Saudi Arabia.

Analysts say deferred payment on a third of that, as requested, would provide Pakistan with a relief of up to $1.8 billion a year on its balance of payment, at current oil prices.

Pakistan’s foreign reserves dwindled to $6.92 billion on Oct 25, out of which the central bank accounted for $3.71 billion, not enough to cover September’s imports of $3.807 billion.

Analysts say Saudi Arabia has no interest in seeing Pakistan descend into chaos, because that would strengthen Al Qaeda.

Mr Zardari performed Umrah on Wednesday morning and also visited Masjid-i-Nabvi where he offered Maghrib prayers.

—Agencies

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