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Pakistan to receive $3bn from Saudi Arabia this week

Saudi Arabia will transfer US$3 billion this week. Source: FILE.

ISLAMABAD: Minister for Information and Broadcasting Fawad Chaudhry announced that all legal arrangements have been finalised and Saudi Arabia will transfer US$3 billion this week.

In a message on Twitter, Fawad Chaudhry shared three good news including the culmination of a nationwide strike by petroleum dealer’s association and that Saudi Arabia has resumed direct flights from Pakistan.

He further shared that legal formalities regarding the transfer of US$3 billion promised by Saudi Arabia have also been finalized and the amount would be transferred to Pakistan in the ongoing week.

During PM Imran Khan’s visit earlier in October, Riyadh had agreed to revive its financial support including about $3 billion in safe deposits and $1.2bn worth of oil supplies on deferred payments. Saudi Arabia will charge around 3.2 to 3.5% markup on annual basis for this deposit amount.

Advisor to the Prime Minister on Finance Shaukat Tarin said that the finance minister of Saudi Arabia has promised to keep US$3 billion with the State Bank of Pakistan and $1.2 billion deferred oil facility.

“Kingdom of Saudi Arabia to place US$3bn with SBP & a $1.2bn deferred oil facility to help the balance of payment of Pakistan,” Shaukat Tarin said in a tweet earlier today.

The finance advisor has termed the bid a “generous gesture” on the part of the Kingdom of Saudi Arabia. He expressed gratitude for the “kind gesture” that he said will help the balance of payment of Pakistan.

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

According to the State Bank of Pakistan, the total liquid foreign reserves stood at $22.773 billion on November 19, 2021. The foreign reserves held by the SBP were standing at $16.254 billion and net foreign reserves held by commercial banks were standing at $6.519 billion.

During the week ended on November 19, 2021, the SBP’s reserves decreased by $691 million to $16.254 billion, mainly due to external debt repayments.

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