A State Bank of Pakistan on Friday confirmed that a second $1 billion tranche of the bailout package from Saudi Arabia had been Received by Pakistan.
With the latest deposit, the central bank’s foreign reserves now stand at $9.4 billion. The third installment is expected to arrive in January 2019, Spokesman Abid Qamar (SBP) said.
Prime Minister Imran Khan visited Riyadh in October on invitation of King Salman bin Abdul Aziz to participate in the Future Investment Initiative Conference. During the meeting, the Saudi royals agreed to provide Pakistan $3 billion in foreign currency support for a year to address its balance-of-payments crisis.
Additionally, the Kingdom had also agreed to park $3 billion in Pakistan’s foreign currency reserves for a year and establish a credit line worth $3 billion for the sale of petroleum products on credit for three years.
Asad Umar said to Local media in islamabad that the second and the third bailout package of the Saudi money are expected to reach Pakistan over the course of the next two months.
Pakistan, which is facing a sever balance of payment crisis due to rising imports bill and shrinking exports has reached out to different friendly countries in the last few months to receive some kind of bailout to keep its foreign exchange reserves in a healthy position.