Pakistan has received $1 billion from Saudi Arabia as a second installment of the promised loan of $3 billion.
With the influx of the second tranche, Pakistan’s foreign exchange reserves have soared to $8.26 billion. The said amount has been given by the Kingdom to overcome Pakistan’s balance of payment crisis.
The State Bank of Pakistan has confirmed that the amount has been received.
Moreover, as per the available sources, the third and final installment of the loan will arrive next month.
It is pertinent to mention here that Prime Minister Imran Khan visited the kingdom in October. After the visit, he announced that Saudi Arabia had agreed to give $6 billion worth of support package to Pakistan. Under this package, the kingdom will open a $3 billion worth of oil credit facility with Pakistan while keeping $3 billion with the country’s foreign reserves.
To this effect, $2 billion has been received by Pakistan. Furthermore, the kingdom’s agreement to provide the said package had come as a sigh of relief as the country was mired in the severe balance of payment crisis.
Experts say that this aid will tend to ease pressure on Pakistan’s foreign reserve and provide a cushion against external shocks.