Qatar will provide $2 billion in bilateral assistance to Pakistan

Qatar is expected to provide $2 billion in bilateral assistance to Pakistan to help cushion its financial crisis and the risk of default.

The country is also expected to receive $1 billion in oil financing from Saudi Arabia, as well as a similar amount in investments from the UAE.

During a press conference, Murtaza Syed, acting governor of the State Bank of Pakistan, stated that the funds are expected to be received over a 12-month period.

Prime Minister Shehbaz Sharif will also be in Qatar on August 23 and 24. Syed, on the other hand, stated that an announcement regarding the assistance may or may not be made during the visit.

The pledges come ahead of an IMF board meeting on August 29, which could result in the release of $1.2 billion in funding.

Finance Minister Miftah Ismail met with his Qatari counterpart Ali bin Ahmed Al-Kuwari earlier today to discuss bilateral relations and potential areas of collaboration.

Previously, Arab countries committed to lending support to Pakistan only after it obtained an IMF program, whereas the latter has sought commitment from Saudi Arabia.

According to Bloomberg data, the Pakistani rupee has performed well this month on the global front, gaining 11% since hitting a record low last month. Concerns about a possible default have subsided as a result of developments in the rupee-dollar parity.