Pakistan’s central bank said it has received $1 billion from Saudi Arabia’s finance ministry, completing the second tranche of a recently agreed $3 billion deposit support package.
The funds were received on April 20, according to the State Bank of Pakistan. The first tranche of $2 billion had already been received on April 15.
The inflow provides a further boost to Pakistan’s foreign exchange reserves at a time when the country remains reliant on support from friendly nations and multilateral lenders to shore up external financing.
Last week, Finance Minister Muhammad Aurangzeb said Saudi Arabia had committed an additional $3 billion in deposits for Pakistan, with disbursement expected shortly. He also said the existing $5 billion Saudi deposit would no longer be rolled over annually and would instead remain in place for three years.
The fresh support comes as Pakistan faces pressure on its external account, including a $3.5 billion repayment to the United Arab Emirates this month, equal to about 18% of the country’s foreign exchange reserves. Saudi officials have confirmed the new $3 billion deposit is intended to help support Pakistan’s balance of payments.
Saudi Arabia has been a key source of financial support for Pakistan during the past economic crises. In 2018, Riyadh announced a $6 billion assistance package that included a $3 billion deposit with the central bank and another $3 billion in deferred oil payments.
Saudi Arabia has been one of Pakistan’s key financial backers in recent years, extending deposits, oil financing support and other assistance to help Pakistan manage balance-of-payments pressures.
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