$3 billion Saudi Arabia loan agreement approved by the federal cabinet
The loan agreement about the $3 billion from Saudi Arabia has been approved by the federal cabinet on Saturday.
Sources reveal that Pakistan will receive the $3 billion from the Saudi Kingdom in the State Bank of Pakistan (SBP) account next week.
Saudi Arabia will receive a 4% annual interest on $3 billion. Pakistan will also repay deferred oil payments with interest to Saudi Arabia.
Pakistan’s current account reserves currently sit at $17 billion, after Saudi’s financial support, the reserves will jump to $20 billion.
Earlier in October, it was announced that Saudi Arabia will support Pakistan financially.
Prime Minister Imran Khan thanked the Saudi Crown Prince Mohammad bin Salman bin Abdulaziz Al Saud for friendly gesture for providing monetary support in tough times.
Financial experts have mentioned that this increase in reserves will play a positive role in helping Pakistan crib the hiking inflation as well as the dollar price.