Pakistan is hopeful that a deal for an additional $2 billion deposit from Saudi Arabia will be signed after Eid ul Fitr.
The Pakistani government is seeking external financing to stabilize the economy, as foreign exchange reserves currently stand at just $4.3 billion as of April 14.
According to a government official, the State Bank of Pakistan will sign a deal with the Saudi Fund for Development for the $2 billion deposit.
The KSA had confirmed bilateral assistance support to the International Monetary Fund (IMF), which was also acknowledged by the lender’s staff.
This agreement follows the confirmation of $2 billion and $1 billion financial support from Saudi Arabia and the UAE, respectively, with no new request for support made by Pakistan.
In November 2021, Saudi Arabia provided a $3 billion deposit and $1.2 billion oil facility on deferred payment during the Pakistan Tehreek-e-Insaf-led government’s tenure.
So far, Saudi Arabia has provided approximately $100 million each month for procuring oil facilities, disbursed a $100 million loan for project financing during the current financial year, and provided $782.82 million in oil facilities during the first nine months (July-March) of the current fiscal year 2022-23.
