Authorities in Pakistan hoped that Islamabad would ink a contract for further deposits of $2 billion from the Kingdom of Saudi Arabia (KSA) following Eid ul Fitr, reported The News on Saturday.
The deposits are essential for the faltering economy since the federal government is scrambling to find outside funding to boost the foreign exchange reserves, which as of April 14 were only worth $4.3 billion.
The State Bank of Pakistan would sign a contract with the Saudi Fund for Development (SFD) soon after Eid for an additional $2 billion deposit, according to a senior government official who spoke to the publication.
He continued by saying that the IMF's staff and the KSA had both confirmed their bilateral assistance support for the lender.
According to him, this arrangement is a follow-up to the UAE's and KSA's confirmation of $2 billion and $1 billion in extra financial support, respectively.
Official sources made it clear that Pakistan had not asked for further funding from the UAE or the KSA beyond the $2 billion and $1 billion, respectively, that had previously been confirmed by these countries.
A year's worth of deposits worth $3 billion that was due on December 5, 2022, had previously been renewed by Saudi Arabia. This $3 billion deposit is a portion of the $4.43 billion in foreign exchange reserves held by the State Bank of Pakistan.
The KSA gave this $3 billion deposit and a $1.2 billion oil facility with deferred payment in November 2021, during the rule of the Pakistan Tehreek-e-Insaf.
Pakistani officials had asked for the rollover of $3 billion in deposits and a $1.2 billion oil facility for one year, as well as for further deposits when Prime Minister Shehbaz Sharif visited the KSA after gaining office last year.
In the first nine months (July–March) of the current fiscal year 2022–23, Saudi Arabia has so far contributed $782.82 million in the form of an oil facility.
Each month, the KSA has given roughly $100 million towards the purchase of oil facilities. During the current fiscal year, the KSA additionally disbursed a $100 million loan in the form of project funding.
The deposits are essential for the faltering economy since the federal government is scrambling to find outside funding to boost the foreign exchange reserves, which as of April 14 were only worth $4.3 billion.
The State Bank of Pakistan would sign a contract with the Saudi Fund for Development (SFD) soon after Eid for an additional $2 billion deposit, according to a senior government official who spoke to the publication.
He continued by saying that the IMF's staff and the KSA had both confirmed their bilateral assistance support for the lender.
According to him, this arrangement is a follow-up to the UAE's and KSA's confirmation of $2 billion and $1 billion in extra financial support, respectively.
Official sources made it clear that Pakistan had not asked for further funding from the UAE or the KSA beyond the $2 billion and $1 billion, respectively, that had previously been confirmed by these countries.
A year's worth of deposits worth $3 billion that was due on December 5, 2022, had previously been renewed by Saudi Arabia. This $3 billion deposit is a portion of the $4.43 billion in foreign exchange reserves held by the State Bank of Pakistan.
The KSA gave this $3 billion deposit and a $1.2 billion oil facility with deferred payment in November 2021, during the rule of the Pakistan Tehreek-e-Insaf.
Pakistani officials had asked for the rollover of $3 billion in deposits and a $1.2 billion oil facility for one year, as well as for further deposits when Prime Minister Shehbaz Sharif visited the KSA after gaining office last year.
In the first nine months (July–March) of the current fiscal year 2022–23, Saudi Arabia has so far contributed $782.82 million in the form of an oil facility.
Each month, the KSA has given roughly $100 million towards the purchase of oil facilities. During the current fiscal year, the KSA additionally disbursed a $100 million loan in the form of project funding.