Abid Qamar—the spokesman of the State Bank of Pakistan (SBP) has confirmed that Saudi Arabia has granted $1bn to Pakistan as part of the $3 billion promised by the Kingdom as the balance of payment support.
The remaining amount of $2 billion would be arriving soon in Pakistan as told by the spokesman.
The funds would be received on the 29th of November by Pakistan when the State Bank releases its weekly numbers for the foreign exchange reserves.
After the visit of the Prime Minister—Imran Khan to Riyadh, this development took place. Imran Kahn on his visit attended the Future Investment Initiative conference and met with the Saudi King Salman bin Abdul Aziz and the Saudi Crown Prince Mohammad bin Salman.
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As per a statement that was issued the previous month from the Prime Minister’s office said that the Kingdom had agreed at providing $3 billion for a span of one year as the balance of payment support.
The spokesman added that after the reception of the amount Pakistan’s foreign exchange reserves have swelled to more than $14 billion.
It is relevant to mention that the State Bank foreign exchange reserves had decreased to the lowest levels in the period of the last four years. They were $7.5 billion, which in no way could have met the import bill of two months.
Asad Umar—the Finance Minister in one of his statements to local media said that the next two portions of the total sum are expected to be received in the next 2 months’ time from the Kingdom.
As per the report of Moody, the general appeal of the emerging markets globally was “broadly stable”, however, there is a risk from politics, increased rates and trade tensions.
The report emphasized that although the portion of Pakistan’s foreign currency debt is comparatively low at nearly thirty-five per cent of the total government debt, decreasing foreign reserves owing to a current account deficit of nearly 4 to 5 per cent of GDP, increases the repayment risks.