Karachi: On Tuesday, State Bank of Pakistan (SBP) announced that it has received $1 billion from Saudi Arabia, representing the second instalment of a $3 billion deposit agreement.
According to SBP these funds were transferred by Saudi Arabia’s Ministry of Finance, which released 1st trench of $2 billion last week. The funding follows recent high-level engagements between Islamabad and Riyadh, where Saudi Arabia not only reaffirmed its support but also announced a fresh commitment of $3 billion in deposits and rolled over an existing $5 billion facility for an additional three-year period.
The timing is significant, as Pakistan is currently managing strain on its external finances. Recently, Islamabad re-paid $ 2 Billion to UAE while $ 1.5 Billion has to be re-paid by the end of current month.
Official data shows that as of March 27, the country’s foreign exchange reserves were recorded at $16.4 billion, providing about three months of import cover.
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