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Pakistan's new Prime Minister Imran Khan is meeting for talks with the King of Saudi Arabia because of speculation that he will use his first official visit to seek financial help.
The finance minister's comments from the former cricketer suggested that Pakistan would turn to its main allies like China and Saudi Arabia, rather than rely on another IMF rescue plan.
Khan arrived in the kingdom on Tuesday and prayed at the Prophet's mosque in Medina, where the gates of the last resting place of the Prophet Muhammad were opened in a show of respect for visiting dignitaries.
He then flew to Jeddah, the seaport city of Saudi Arabia located on the Red Sea, and later dines with Crown Prince Mohammad bin Salman at a state dinner before to go to Abu Dhabi.
Mr. Khan lamented Pakistan's financial situation during its first official address as prime minister in August, saying that "never in the history of Pakistan have we faced such difficult economic circumstances. ". The country's budget deficit rose to 6.6 percent of gross domestic product in the fiscal year ended June 30.
He announced a series of austerity measures and raised taxes for middle and upper class employees, but warned that he should "take more debt to repay our obligations" to international lenders.
Last month, Finance Minister Asad Umar said that an IMF bailout was a fallback option and that the government was exploring other avenues for assistance. Mr. Umar accompanies Mr. Khan during the visit to Arabia.
DawnPakistan's largest newspaper noted that "Prime Minister Khan's decision to choose Saudi Arabia as the destination of his first official visit abroad has led to speculation" about a request for help.
It certainly would not be unprecedented. Saudi Arabia lent $ 1.5 billion to Pakistan (£ 1.14 billion) in 2014, just six months after the IMF's last Islamabad bailout. The money was used to strengthen the rupee currency of Pakistan.
In official statements, the Pakistani Foreign Office said that Khan would discuss "issues of bilateral interest" with King Salman and Crown Prince Mohammed bin Salman.
Saudi Arabia and the United Arab Emirates are important job providers for Pakistanis abroad – remittances are an essential source of foreign exchange for the Pakistani treasury.
Saudi Arabia, in particular, maintains close ties of security with Pakistan, while its Muslim holy places attract many Pakistani pilgrims every year.
Additional reports by agencies
