Saudi Arabia pledges $3b to Pakistan amid BoP crisis

Saudi Arabia on Tuesday pledged $3 billion to Pakistan as the South Asian country battles a balance of payment crisis, a statement from Islamabad said.

It also agreed to provide up to another $3 billion on deferred payment for import of oil, the statement added.

The agreement came between the two countries during a visit by Prime Minister Imran Khan to Riyadh where he met King Salman bin Abdulaziz.

Khan also attended a Saudi Arabian investment conference where the new Pakistani leader launched a charm offensive targeting potential investors as Pakistan continues to seek funding to plug its deteriorating finances. The summit, nicknamed "Davos in the desert", has been overshadowed by growing global outrage over the murder of journalist and Saudi government critic Jamal Khashoggi.

The two countries "agreed Saudi Arabia will place a deposit of USD 3 Billion for a period of one year as balance of payment support", said the statement.

"It was also agreed that a one year deferred payment facility for import of oil, up to $3 billion, will be provided by Saudi Arabia. “This arrangement will be in place for three years, which will be reviewed thereafter."

During his address at the troubled Future Investment Initiative (FII) in Riyadh, Khan confirmed that Pakistan was also in talks with the International Monetary Fund (IMF) over a new bailout.