Saudi Arabia agrees to bail out cash-trapped Pak

LAHORE: Saudi Arabia has reportedly agreed to bail out cash-strapped Pakistan with 'substantial oil supply' on deferred payment and cash assistance.

Saudi Arabia has agreed to provide 'tangible assistance' to "ease" Pakistan's balance of payment pressure' and assured the visiting Pakistani delegation of investing more than one billion dollars in the livestock and agricultural sectors.

"Foreign Minister Shah Mehmoud Qureshi is expected to announce the Saudi package in Islamabad on Friday," the Dawn News reported.

The Saudi leadership also said that they would increase hiring of Pakistani labour and would provide more financial assistance through the Friends of Pakistan initiative.

Pakistan President Asif Ali Zardari and Saudi King Abdullah decided to expand the volume of mutual trade from 5.7 billion dollars to 7 billion dollars. They stressed long-term strategic mutual ties and enhanced defence co-operation