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Pakistan receives $3bn from Saudi Arabia to stabilise foreign exchange

source: online

ISLAMABAD: The Saudi government announced a deposit of $3 billion with the State Bank of Pakistan (SBP) besides a $1.2 billion deferred oil facility to Pakistan to help its balance of payment issues.

According to Saudi media, the Saudi Fund for Development (SFD) in a “generous gesture” announced a deposit of  S3 billion with the State Bank of Pakistan to help the government support its foreign currency reserves and counter the impact of the coronavirus pandemic.

The report said the deposit was in addition to an oil deferred payment facility of $1.2 billion for petroleum products during the year. The announcement would help ease pressure on Pakistan’s foreign exchange reserves, due to the recent sharp hike in global commodity prices.

Federal Information Minister Chaudhry Fawad Hussain shared the major development, a day after Prime Minister Imran Khan returned from a three-day visit to the Kingdom to attend the Middle East Green Initiative of the Saudi Crown Prince.

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“Breaking news Saudi Arabia announcement support Pakistan with 3 billion US dollar as deposit in Pakistan central bank and also financing refined petroleum product with 1. 2 billion us dollars during the year.”

In a statement on Twitter, Finance Minister Shaukat Tarin thanked the Crown Prince and KSA for this “kind gesture.” He said “Yesterday evening the Finance Minister of Saudi Arabia informed me of the generous gesture of the Kingdom of Saudi Arabia to place US$3bn with SBP & a $1.2bn deferred oil facility to help the balance of payment of Pakistan.

Minister of Energy Hammad Azhar, who accompanied the Prime Minister on his visit to Saudi Arabia said the Saudi Development Fund has generously announced for Pakistan an oil deferred payments facility of $1.2bn/annum and a $3 bn deposit with SBP. “This will help ease pressures on our trade & forex accounts as a result of global commodities price surge,” he said