Pakistan has received a tranche of $1 billion from its friendly country, Saudi Arabia, on the account of a bailout package, State Bank of Pakistan confirmed. This was the last installment of the $3 billion dollar cash support from the kingdom.
Besides this, the kingdom will help Pakistan with the supplies of crude oil or petroleum products worth $3 billion in months to come.
United Arab of Emirates has also transferred $1 billion to the SBP yesterday, its first tranche of the committed $3 billion from the brotherly country. It was received under an agreement signed on January 22, 2019 by SBP Governor Tariq Bajwa and Abu Dhabi Fund for Development Director-General Saif Al Suwaidi.
In December, the UAE expressed the intention to deposit $3 billion in the SBP account. This assistance has improved Pakistan’s position in terms of import payments and debt repayment in the short term.
“The deposits will help Pakistan achieve financial stability and overcome economic challenges,” the Foreign Office tweeted after the agreement was inked with Abu Dhabi earlier this week.
Saudi Arabia and the UAE are also exploring various projects in order to invest up to $30 billion in Pakistan.
Saudi Arabia had announced a financial package of $6 billion including $3 billion in cash and another $3 billion for the purchase of petroleum products on credit up to three years. A similar package had been announced by the UAE, which includes $3 billion in cash and $3.2 billion in differed payments for petroleum products. While the support from China has not been made public, it is expected that the neighbor country plans to send $2 billion in lending or grants.
Pakistan’s forex reserves have increased to $15.257 billion, up from $13.257 billion. SBP reserves surged to $8.63 billion while commercial banks maintain reserves of $6.62 billion.