USD 1.5 billion is a gift; does not have to be repaid: Pak

Pakistan's Finance Minister Ishaq Dar today said the USD 1.5 billion grant that helped it shore up foreign exchange reserves recently was given by "a friendly country" as a gift which does not have to be repaid.
Dar said the amount was transferred to Pakistan Development Fund and would be utilised for the development projects.
"There is no secret deal," he said adding that there was also understanding about selling arms and ammunition in exchange for the "gift".
Though he did not name the country, it is an open secret here that Saudi Arabia had provided the fund.
The monetary assistance contributed to a sharp recovery of the Pakistani rupee, which rose to a nine-month high of 97.40 from 105.40 against the US dollar between March 4 and 12, its strongest rally in 30 years.

In a policy statement on the floor of the National Assembly, Dar said the amount was given to Pakistan with no strings attached.

The sudden "gift" has led to speculation about a secret deal with Saudi Arabia.
A media report had also said Saudi Arabia is seeking Pakistani arms for Syrian rebels.
Dar, however, said Pakistan will never send its troops to any country against the national interest.
Pakistan Foreign Office and Advisor to Prime Minister on National Security and Foreign Affairs Sartaj Aziz has denied these reports.
Speculation about a shift from Pakistan's traditional policy of non-interference in the affairs of Muslim countries emanated from a joint declaration in February at the end of a visit to Islamabad by Saudi Arabia's Crown Prince Salman Bin Abdulaziz Al-Saud.

The declaration had called for the "formation of a transitional governing body" in Syria and media reports said that Saudi Arabia was in talks with Pakistan to provide anti-aircraft and anti-tank rockets to the rebels.