Federal cabinet approves $3bn Saudi loan

ISLAMABAD: The federal cabinet has approved a $3 billion loan from the Kingdom of Saudi Arabia, ARY News reported on Saturday.

The State Bank of Pakistan (SBP) is expected to receive the amount from the Kingdom by next week, after which the central bank’s foreign exchange reserves would swell to $20 billion from the current $17bn.

Also Read: US$3 bn to be transferred from Saudi Arabia in week: Fawad Chaudhry

Last month, the government had announced that Saudi Arabia will deposit $3 billion with the central bank and extend $1.2 billion of trade finance to support Pakistan’s balance of payments.

Prime Minister Imran Khan on Oct 27 thanked Crown Prince Mohammed bin Salman following the Saudi Arabia’s “generous gesture” of depositing $3 billion with the Pakistani central bank to support the country’s foreign exchange reserves.

Also Read: ‘Saudi Arabia promises to keep $3bn in Pakistan to help forex reserves’

PM Khan said in a tweet that he wants to thank His Royal Highness (HRH) Prince Mohammad bin Salman for supporting Pakistan with the deposit of $3 billion in the State Bank of Pakistan and for “financing refined petroleum product with $1.2 bn”

“KSA has always been there for Pak in our difficult times incl now when world confronts rising commodity prices,” the Prime Minister said in his tweet.