Pakistan has approached Saudi Arabia for long-term financial support, proposing that the existing $5 billion in short-term deposits be converted into a 10-year facility as Islamabad is feeling economic strain amid rising regional tensions.
According to The News, Pakistan has formally requested Saudi Arabia to transform the $5 billion currently held with the State Bank of Pakistan (SBP) into a long-term arrangement lasting ten years with favorable pricing.
Pakistan has also asked Riyadh to expand its oil facility on deferred payments. Under the proposal, the current $1.2 billion facility would be increased to $5 billion, while the repayment period for each tranche would be extended from one year to three years.
Last month, the United Arab Emirates (UAE) agreed in principle to roll over a $2 billion deposit for a short-term period of two months, just days before the previous one-month extension was due to expire.
Earlier, the UAE had already rolled over the same $2 billion for one month, with $1 billion maturing on February 16 and the remaining $1 billion on February 22.
