Pakistan would pay over $165 million in interest payments in a year on the $4.2-billion Saudi Fund facility announced last month, revealed the Ministry of Finance.
Muzzammil Aslam, Spokesperson Ministry of Finance in a clarification to a media report, informed that Pakistan has secured the $3 billion loan as deposit in Pakistan's central bank from Saudi Arabia at an interest rate of 4% while the $1.2-billion financing on refined petroleum products at 3.8% interest rate.
“It is clarified that in these tough times, the deposit and oil facility speaks of the strong brotherly relationship between Pakistan and Saudi Arabia. The rates would be 4% & 3.8% respectively,” said Aslam, in a series of tweets.
This translates into $120 million in interest payment for $3 billion Saudi Arabia safe deposits in the State Bank of Pakistan (SBP) to support the foreign exchange reserves, and $45.6 million for the $1.2-billion oil deferred facility.
Lastly, the spokesperson said, “we are grateful to the Kingdom of Saudi Arabia for helping us once again in our hour of need.”
On Saturday, the federal cabinet reportedly approved a summary with respect to $3 billion Saudi Arabia safe deposits in the State Bank of Pakistan (SBP) to support the foreign exchange reserves.
On October 26, the Information Minister in his tweet said that “the Saudi Arabia's announcement to support Pakistan with $3 billion as deposit in Pakistan central bank and also financing refined petroleum products with $1.2 billion dollars during the year”.
Additionally, the spokesman further stated that the government would also issue $1 billion Sukuk bonds in the international capital market in December 2021.
Earlier, the Finance Ministry’s spokesman also tweeted, “there is fake news circulating related to ‘Adviser to Finance’ meeting with Chinese Economist comments in joint session. This is absolutely rubbish social media message no such interaction took place. As we all know the ‘fake news’ is the biggest challenge to this government.”