KARACHI: The State Bank of Pakistan received another $1 billion from Saudi Arabia, making up the final installment of a $3 billion support package, a spokesman from the central bank confirmed on Friday.
The deposit completes the $3 billion package that Pakistan signed with Saudi Arabia aimed at helping the country avert a balance-of-payment crisis. The kingdom had deposited $2 billion in Pakistan’s central bank earlier.
The latest transfer comes a day after the United Arab Emirates deposited the first installment amounting to $1 billion of a $3 billion financial support package in the State Bank. The payment was made following an agreement with the Abu Dhabi Fund for Development in Abu Dhabi on January 22.
After the deposits from the UAE and Saudi Arabia, the State Bank’s reserves have climbed to $8.86 billion while the country’s foreign exchange reserves now stand at around $15.25 billion.
Pakistan will be paying 3% interest rate on the payments from Saudi Arabia, and 3.18% on the UAE loans.
The country has avoided a balance-of-payment crisis this year and is close to concluding an investment agreement with China, Finance Minister Asad Umar said on Thursday. The Chinese aid, along with the support from Saudi Arabia and the UAE, is expected to help Pakistan bridge a $12 billion financing gap and negotiate better terms for a bailout loan from the International Monetary Fund.
