Daily Times

The State Bank of Pakistan received another $1 billion from Saudi Arabia, making up the final instalment of a $3 billion support package, a spokesman for the central bank confirmed on Friday.

The deposit completes the $3 billion package that Pakistan signed with Saudi Arabia aimed at helping the country to avert a balance-of-payment crisis. The kingdom had deposited $2 billion in Pakistan’s central bank earlier.

The latest transfer came a day after the United Arab Emirates deposited the first instalment amounting to $1 billion of a $3 billion financial support package in the State Bank. The payment was made following an agreement with the Abu Dhabi Fund for Development in Abu Dhabi on January 22.

After the deposits from the UAE and Saudi Arabia, the State Bank’s reserves have climbed to $8.86 billion while the country’s foreign exchange reserves now stand at around $15.25 billion.

The country has avoided a balance-of-payment crisis this year and is close to concluding an investment agreement with China, Finance Minister Asad Umar had said on Thursday. The Chinese aid, along with the support from Saudi Arabia and the UAE, is expected to help Pakistan bridge a $12 billion financing gap and negotiate better terms for a bailout loan from the International Monetary Fund.

Published in Daily Times, January 26^th 2019.