Shahbaz, Saudi prince discuss economic ties
RIYADH: Prime Minister Shahbaz Sharif and Saudi Crown Prince Mohammed Bin Salman on Saturday held discussions to further strengthen the bilateral, economic, investment and trade ties between the two countries.
During the meeting, issues of mutual, global and regional interest were also discussed between the two leaders during a meeting at the Royal Palace.
Shahbaz reached the Saudi port city of Jeddah on Friday and was received by Governor of Makkah Khalid Bin Faisal Al Saud and National Security Adviser Dr Musaed Al Aiban.
During the meeting, the premier also discussed job-creation opportunities in the kingdom for Pakistani expatriates.
Earlier, upon his arrival at the palace, the premier was warmly welcomed by the crown prince. He was also given a guard of honour.
SUBSIDIES UNCHANGED: In a separate development, Pakistan said on Saturday it would maintain subsidies to keep fuel and power prices steady for consumers, going against International Monetary Fund (IMF) recommendations as the country seeks to boost its rescue package with the fund.
The IMF said on Monday that Pakistan had agreed to roll back unfunded subsidies to the oil and power sectors ahead of the resumption next month of a review of the $6 billion package signed in July 2019.
But Prime Minister Shahbaz Sharif rejected a proposal to raise the prices of petroleum products “so as not to burden the consumers,” a finance ministry statement said. The prices are reviewed every two weeks.
Pakistan is set to give more than $2 billion in subsidies to the oil and power sectors from April to June, which was announced by ousted prime minister Imran Khan in his last days in power.
Fuel and electricity prices have been the subject of public pressure amid double-digit inflation.
An IMF mission is due to arrive in Pakistan in May to resume discussions over policies for completing the seventh review of the country’s Extended Fund Facility (EFF), which Islamabad has asked the IMF to increase the size and duration of. If the IMF review is cleared, Pakistan will get more than $900 million, which would in turn unlock additional external funding.
The South Asian nation is in dire need of external finances due to a widening current account deficit and foreign reserves falling as low as $10.5 billion, equivalent to less than two months of imports.