In response to the ongoing war in the Middle East, Pakistan has taken key economic steps and approached Saudi Arabia for long-term cooperation.
According to sources, Pakistan submitted eight requests to Saudi Arabia seeking extended economic support, including converting the existing $5 billion reserves into a 10-year long-term facility.
The requests also include increasing the deferred oil payment facility from $1.2 billion to $5 billion, along with an extension of its tenure. Additional proposals involve securitizing overseas Pakistani remittances worth $10 billion and other financial arrangements.
Pakistan is simultaneously engaged with the International Monetary Fund under the $7 billion Extended Fund Facility (EFF) for the completion of the third review.
Officials noted that negotiations for a comprehensive economic cooperation package between Pakistan and Saudi Arabia were already underway prior to the recent escalation in the Middle East.