Pakistan repays $1 billion Saudi loan

ISLAMABAD: Pakistan has returned $1 billion to Saudi Arabia as the second instalment of a $3 billion soft loan, ARY News reported, citing sources.

According to sources, the first instalment of $1 billion was returned to Saudi Arabia last month and this is the second instalment and third and final instalment would be paid next month.

Pakistan returned the instalment of the Saudi loan after getting a commercial loan from China, sources said. After repayment of the second instalment, the country’s foreign exchange reserves stand at $13.3 billion.

Read more: Pakistan to repay US$ two billion loan to Saudi Arabia on schedule

In October 2018, Saudi Arabia had agreed to provide US$ 6.2 billion worth of financial package to Pakistan for three years. This included US$ three billion in cash assistance to address Pakistan’s balance of payment issue and US dollar 3.2 billion worth of oil on deferred payments.

Pakistan has already paid back US$ one billion to Saudi Arabia in May this year out of the three billion dollars financing.