ISLAMABAD: Saudi Arabia has deferred the repayment of Pakistan’s $5 billion loan for three years.
The SBP officials said that the rollover of the $5 billion loan has reduced immediate payment pressure on Pakistan.
Pakistan has $8 billion in deposits with Saudi Arabia, the officials added. Pakistan received $3 billion from Saudi Arabia in April this year.
In Islamabad, officials said Pakistan’s external financing needs have fallen to $21.5 billion this year.
The SBP officials said that the interest payment burden on foreign loans has declined by around half a billion dollars.Pakistan repaid $2.2 billion in loans in July, officials said.
China’s refinancing of a $1.3 billion commercial loan is expected next month, State Bank officials said.
The SBP purchased $9 billion from the open market during the previous financial year.
Pakistan has set a target of increasing foreign exchange reserves to $20.2 billion by December 2026.
