Pakistan receives $2bn from Saudi Arabia: SBP
- Saudi Arabia had committed $3 billion in additional deposits
The State Bank of Pakistan (SBP) said on Thursday it had received funds of US$ 2 billion from Ministry of Finance, Kingdom of Saudi Arabia.
On Wednesday, Finance Minister Muhammad Aurangzeb informed that Saudi Arabia had committed $3 billion in additional deposits, with disbursement expected soon.
He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for three years.
The extra funding for Pakistan comes on top of Riyadh extending the rollover arrangement for an additional $5 billion deposit for a longer period, Pakistan Finance Minister Muhammad Aurangzeb told reporters in Washington.
“We can confirm that Saudi Arabia has agreed to a $3 billion deposit with Pakistan to support their balance of payments,” a Saudi Ministry of Finance spokesperson told Reuters.
Pakistan faces a $3.5 billion repayment to the UAE this month that has put a strain on its foreign exchange reserves, which stood at about $16.4 billion as of March 27.
The repayment to the UAE amounts to roughly 18% of those holdings.
Saudi Arabia has repeatedly stepped in to support Pakistan during periods of economic stress.
In 2018, Riyadh unveiled a $6 billion package that included a $3 billion deposit at Pakistan’s central bank and $3 billion in oil supplies on deferred payment.
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