Saudi Arabia will help Pakistan's finances as it hopes to help strengthen alliances with countries struggling with the effects of rising inflation, Saudi Finance Minister Mohammed al-Jadaan said, Bloomberg reports.
The Saudi government will “continue to support Pakistan as much as we can,”, Al Jadaan said at a press conference in Riyadh.
The kingdom has taken several steps to provide financial support to countries in the region in an effort to strengthen relations with allies. It extended a $3 billion deposit to boost foreign-exchange reserves and help Pakistan cope with the economic impact of the coronavirus pandemic earlier this month.
Saudi Arabia also plans to invest more in Egypt and begin making deals in Turkey, Al-Jadaan said.
"“Our relationship with Turkey is improving greatly, and we hope to have investment opportunities," he said. They have started investing actively in Egypt, and will continue to look for investment opportunities, and this is more important than deposits. Deposits may be withdrawn, but investments remain, Al-Jadaan said.
The Finance Ministry said last month that Saudi Arabia was in the final stages of agreeing to a $5 billion deposit with Turkey's central bank, a major boost to President Recep Tayyip Erdogan's bid to keep the lira stable ahead of next year's presidential election. Once concluded, the agreement will crown a recent rapprochement that ended years of animosity between the governments of Turkey and Saudi Arabia.
Riyadh also extended a $5 billion deposit with Egypt's central bank last month, and the kingdom's Public Investment Fund is also exploring potential $10 billion investments in Egypt's health, education, agriculture and financial sectors.