Pakistan receives $ 3 billion deposit from Saudi Arabia


KARACHI:

The State Bank of Pakistan received a $ 3 billion deposit from Saudi Arabia on Saturday to support foreign exchange reserves.

“Good news, a $ 3 billion Saudi deposit received by SBP,” Prime Minister’s Finance Advisor Shaukat Tarin said in a tweet on Saturday. “I would like to thank Crown Prince Mohammed Bin Salman and the Kingdom of Saudi Arabia for this kind gesture.”

The deposit is expected to support the local currency and help strengthen the country’s foreign exchange reserves. According to market rumors, the Rupee is likely to partially recover as the deposit will support market sentiment.

On October 27, 2021, Saudi Arabia agreed to provide a $ 4.2 billion lifeline to Pakistan on an annual basis in the form of cash and oil assistance on deferred payments.

As part of the deal, the Middle East nation announced it would deposit $ 3 billion in cash at the State Bank of Pakistan and also provide $ 1.2 billion of oil in payments. deferred.

In a statement on Saturday, Ismail Iqbal Securities’ research director Fahad Rauf cherished the $ 3 billion received from Saudi Arabia and added that it should give the rupee some stability.

“Pakistan will soon be issuing a sukuk worth $ 1 billion,” he said. “The receipt of another billion dollars from the International Monetary Fund is expected in January.”

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