In lieu of the tight cash position being faced by Pakistan, a bailout amount of $3 billion has been issued by oil-rich state of Qatar on Monday. This development comes after Emir Sheikh Tamim bin Hamad gave his nod in cooperation for trade, anti-money laundering and preventing financial support to terrorists, as promised by him during his trip to Islamabad.
This comes as a huge relief for Pakistani Prime Minister Imran Khan, who has been facing acute crisis of payment imbalance. In fact, this helping hand from the Gulf State is the fourth one in the last 11 months of Pakistan's continuous struggle to climb out of the default situation.
Qatar's foreign minister Sheikh Mohammad bin Abdulrahman Al Thani recently announced its plan of financial assistance to Pakistan.
"As per directions given by HH Amir, the Deputy Prime Minister and Minister of Foreign Affairs have announced that new investments worth QR3 billion would be made in the Islamic Republic of Pakistan in the form of direct investments and deposits", as tweeted by the official Qatar News Agency. "The Qatari-Pakistani economic bond will be amounting $9 billion. Qatar gives an affirmative nod for further strengthening of ties at all economic, cultural, political and sports levels."
Dr. Abdul Hafeez Sheikh, Financial advisor to Pakistan Prime Minister also confirmed on his Twitter handle about the financial help offered by Qatar. "I want to thank the Emir of Qatar HRH Sheikh Tamim Bin Hamad Al Thanifor announcing $3 billion in deposits and direct investments for Pakistan and for Qatar’s affirmation to further develop the relation between the two countries."
Earlier also, Pakistan received $4.6 billion in the form of commercial loans and deposits from China and cash deposit of $3 million plus oil facility of $3.2 billion from Saudi Arabia. The United Arab Emirates also pitched in a cash fund of $2 billion.
The Qatari Emir who had been visiting Pakistan recently was honoured with ‘Nishan-e-Pakistan’, Pakistan's most supreme civil honour, on Sunday.
Besides joining hands in economy and trade, both the countries also signed an important memorandum of understanding about cooperating in the field of exchanging financial intelligence in case of money laundering and efforts to curb money assistance to terrorists. This seems to be an essential step towards curbing global terrorism.
Presently, finance ministry of Pakistan has not issued the break-up of Qatar aid amounting $3 billion as to how much would be bank deposit and investments individually. As reported by the Express Tribune, the amount to be received in the form of deposits has not been made clear. The deposit is to be received by the State Bank of Pakistan, so that a temporary reserve can build up to restore dwindling amounts.
Last month, Pakistan had arrived at a preliminary nod with the International Monetary Fund that agreed for a bailout package of $6 billion as an effort to strengthen its slowed down economy and to provide cushioning to drowning finances.