Pakistani Prime Minister Imran Khan prepares to speak at the opening of the Future Investment Initiative conference, in Riyadh. AP
Pakistani Prime Minister Imran Khan prepares to speak at the opening of the Future Investment Initiative conference, in Riyadh. AP

Saudi Arabia pledges $3 billion to Pakistan amid balance of payment crisis



Saudi Arabia pledged $3 billion (AED 11 billion) to Pakistan on Tuesday as the South Asian country battles a balance of payment crisis, a statement from Islamabad said.

It also agreed to provide up to the same amount again on deferred payment for import of oil, the announcement added.

The agreement came between the two countries during a visit by Prime Minister Imran Khan to Riyadh where he met King Salman.

The new Pakistan leader also attended a Saudi Arabian investment conference where he launched a charm offensive targeting potential investors, continuing to seek funding to plug deteriorating finances.

The summit, nicknamed "Davos in the desert", has been overshadowed by growing global outrage over the murder of journalist and Saudi government critic Jamal Khashoggi.

The two countries "agreed Saudi Arabia will place a deposit of USD 3 Billion for a period of one year as balance of payment support", said the statement.

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"It was also agreed that a one year deferred payment facility for import of oil, up to $3 billion, will be provided by Saudi Arabia.

"This arrangement will be in place for three years, which will be reviewed thereafter."

During his address at the troubled Future Investment Initiative (FII) in Riyadh, Mr Khan confirmed that Pakistan was also in talks with the International Monetary Fund (IMF) over a new bailout.

The prime minister's attendance at the FII comes as leading policy-makers and corporate chiefs shunned the conference in response to the death of Khashoggi at the Saudi consulate in Istanbul -- a scandal that has tipped Riyadh into a diplomatic crisis.

Since taking power in August, Mr Khan has also sought loans from allies such as China and Saudi Arabia, promised to recover funds stolen by corrupt officials, and embarked on a series of high-profile populist austerity measures.

But help has been in short supply and economists' warnings have grown increasingly urgent.

The Saudi pledge comes days after Pakistan's central bank warned inflation could double in the coming year - hitting 7.5 per cent - while the country's growth target rate of 6.2 per cent would likely be missed.

Pakistani finance minister Asad Umar on Saturday warned the country was fast heading towards bankruptcy.

However, he promised to end the country's reliance on IMF bailouts to shore up its shaky economy, as officials prepared to negotiate a new loan.

An IMF team is set to arrive in Pakistan in early November to begin negotiations.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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City's slump

L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
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L - Bournemouth, 2-1
L - Tottenham, 2-1

'The Sky is Everywhere'

Director:Josephine Decker

Stars:Grace Kaufman, Pico Alexander, Jacques Colimon

Rating:2/5

Final results:

Open men
Australia 94 (4) beat New Zealand 48 (0)

Plate men
England 85 (3) beat India 81 (1)

Open women
Australia 121 (4) beat South Africa 52 (0)

Under 22 men
Australia 68 (2) beat New Zealand 66 (2)

Under 22 women
Australia 92 (3) beat New Zealand 54 (1)

Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape

Russia's Muslim Heartlands

Dominic Rubin, Oxford

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Business Insights
  • Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
  • The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
  • US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
UAE currency: the story behind the money in your pockets
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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Checks continue

A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.

Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.

Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.

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Hometown: Cairo

Age: 37

Favourite TV series: The Handmaid’s Tale, Black Mirror

Favourite anime series: Death Note, One Piece and Hellsing

Favourite book: Designing Brand Identity, Fifth Edition

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The biog

Place of birth: Kalba

Family: Mother of eight children and has 10 grandchildren

Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken

Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah

Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”

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Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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