Pakistan receives $3 billion loan from Saudi Arabia
Pakistan on Saturday received a $3 billion loan from Saudi Arabia, the prime minister’s finance adviser said, as part of an economic support package.
Afghan Voice Agency (AVA)_The South Asian country has faced growing economic challenges, with high inflation, sliding forex reserves, a widening current account deficit and a depreciating currency.
Pakistan’s total liquid foreign reserves stand at $22,498.8 million, based on data.
Shaukat Tarin, finance adviser to Pakistan’s prime minister Imran Khan, said in a tweet: “I want to thank His Excellency Crown Prince Mohammed Bin and Kingdom of for the kind gesture.”
The loan from Saudi Arabia will be for one year at a 4% interest rate under the terms of the package, which was signed last month.
“This is positive news … and will help bolster both the foreign exchange reserves and sentiments in the forex market,” Saad Hashemy, executive director at Capital said.
The loan comes a week after the International Monetary Fund agreed with Pakistan on measures needed to revive a stalled $6 billion funding program. Ruters repoerted.