Home South Asia Pakistan Pakistan receives $1 billion in the second tranche of Saudi aid

Pakistan receives $1 billion in the second tranche of Saudi aid

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News Desk |

Pakistan has received the second installment of $1 billion in financial aid from Saudi Arabia, which has shored up country’s depleting foreign exchange reserves.

The State Bank of Pakistan (SBP) said its foreign reserves had crossed the $9 billion mark with the latest installment of Saudi assistance. The third installment of $1 billion from the kingdom is expected in January 2019.

The Saudi assistance was announced at a time when Islamabad and the International Monetary Fund (IMF) were negotiating a bailout package for Pakistan’s economy.

During Prime Minister Imran Khan’s visit to Saudi Arabia in October, the kingdom had agreed to extend $3 billion in foreign currency support to Pakistan for a year in order to help Islamabad address its balance-of-payments issue. The first tranche of $1 billion was received in November.

Apart from the $3 billion foreign currency support, Riyadh had also agreed to sell oil to Islamabad on deferred payment worth up to another $3 billion for one year.

Read more: Will the ‘Saudi Help’, help us? – Mir Mohammad Ali Khan

The Saudi assistance was announced at a time when Islamabad and the International Monetary Fund (IMF) were negotiating a bailout package for Pakistan’s economy. The Saudi aid is expected to reduce pressure on Pakistan’s foreign currency reserves and help the rupee against the US dollar.


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