KARACHI: On Friday Jan 25th, the spokesperson from central bank confirmed that another one billion dollar is received by the State Bank of Pakistan from Saudi Arabia, which makes up the final installment of a $3 billion support package.
During his visit to Saudi Arabia, Imran Khan signed a package of $3 billion and the recent deposit completes package, aiming to help the collapsing balance-of-payment of Pakistan. Earlier, $2 billion had been deposited by the KSA in Pakistan’s central bank.
Also, the United Arab Emirates deposited the first installment of $1 billion of a $3 billion, just a day before KSA’s deposit of the financial support package in the State Bank. On Jan 22nd, an agreement was signed with the Abu Dhabi Fund for Development in Abu Dhabi.
An interest rate of 3% will be paid by Pakistan on the payments from Saudi Arabia and 3.18% on the UAE loans.
The reserves of State Bank have climbed to $8.86 billion after the deposits from the UAE and Saudi Arabia while the foreign exchange of the country reserves now stand at around $15.25 billion.
On Thursday, Financial Minister Asad Umar said that this year our country has avoided a balance-of-payment crisis and is very near to conclude an investment agreement with China.
Along with the support of KSA and UAE, a $12 billion financial gap is expected to be filled by the Chinese aid to negotiate better terms for a bailout loan from the IMF.