Pakistan receives 3rd tranche of $1b from Saudi Arabia

  • SBP has also received $1b from UAE which has committed to provide the financial support package of $3b to the South Asian country
Business

KARACHI – The State Bank of Pakistan received the final instalment of a $3 billion support package from Saudi Arabia, the Radio Pakistan reported on Friday.

The $1b deposit completes the $3b 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.

On its twitter account, the State Bank of Pakistan confirmed that it has received the amount.

The latest transfer follows UAE’s first instalment 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.