Pakistan secures $3 billion bailout from Qatar

Cash-strapped Pakistan has secured a financial assistance in form of a bailout package of $3 billion from oil-rich Qatar, a day after Qatar’s Emir Sheikh Tamim bin Hamad concluded his visit to Pakistan.

Qatar’s financial assistance to Pakistan was announced by Sheikh Mohammed bin Abdulrahman Al Thani, Foreign Minister of Qatar.

Key Highlights

Pakistan also conferred visiting Qatari Emir with the Nishan-e-Pakistan, country’s highest civil honour.

Pakistan and Qatar apart from stepping up cooperation in trade and economy also signed a memorandum of understanding (MoU) to cooperate in field of exchange of financial intelligence related to money laundering and curbing terrorism financing.

During past 11 months, the Gulf state is 4th nation that has come forward at Pakistan’s rescue from default as when Prime Minister Imran Khan’s government tries to overcome a ballooning balance-of-payments (BOP) crisis.

Other Financial Aid to Pakistan:

China gave $4.6 billion aid to Pakistan in shape of deposits and commercial loans.

Saudi Arabia provided $3 billion cash deposit and $3.2 billion oil facility on deferred payments.

United Arab Emirates (UAE) also provided $2 billion cash deposit.

In May 2019 Pakistan reached a preliminary agreement with International Monetary Fund (IMF) for $6 billion bailout package that was aimed at supporting Pakistan’s finances and for strengthening a slowing economy.

Month: Current Affairs - June, 2019