Kingdom’s “generous gesture” will help ease pressure on Pakistan’s foreign exchange reserves, due to the recent sharp hike in global commodity prices.
ISLAMABAD: The Saudi government announced a deposit of US $3 billion with the State Bank of Pakistan (SBP) besides a US $1.2 billion deferred oil facility to Pakistan to help its balance of payment issues, an official announcement said.
According to the Saudi Press Agency (SPA), the Saudi Fund for Development in a “generous gesture” announced a deposit of US $3 billion with the State Bank of Pakistan on Tuesday to help the government support its foreign currency reserves and counter the impact of the Corona pandemic.
The SPA reported that the deposit was in addition to an oil deferred payment facility of US $1.2 billion for petroleum products, during the year.
The SPA said that the gesture reflected the Saudi Kingdom’s continued position in supporting the economy of Pakistan.
The announcement would help ease pressure on Pakistan’s foreign exchange reserves, due to the recent sharp hike in global commodity prices.
In a late-night development Information Minister Ch Fawad Hussain shared the major development on his Twitter handle, a day after the return of Prime Minister Imran Khan from a three-day visit to the Kingdom of Saudi Arabia to attend the Middle East Green Initiative of the Saudi Crown Prince.
“Breaking news: Saudi Arabia announcement support Pakistan with $3 billion as deposit in Pakistan central bank and also financing refined petroleum product with $1. 2 billion during this year,” he wrote on Twitter.
Finance Minister Shaukat Tarin in a tweet early Wednesday said “Yesterday evening the Finance Minister of Saudi Arabia informed me of the generous gesture of the Kingdom of Saudi Arabia to place $3bn with SBP & a $1.2bn deferred oil facility to help the balance of payment of Pakistan.”
“We thank the Crown Prince & the KSA for this kind gesture.”
Minister of Energy Hammad Azhar, who accompanied the Prime Minister on his visit to Saudi Arabia said the Saudi Development Fund has generously announced for Pakistan an oil deferred payments facility of US $1.2 billion/annum and a US $3 billion deposit with SBP.
“This will help ease pressures on our trade & forex accounts as a result of global commodities price surge,” he said in a message on Twitter.
PM Imran thanks MBS for financial support
On the other hand, Prime Minister Imran Khan Wednesday thanked Crown Prince Mohammed bin Salman following the Saudi Arabian “generous gesture” of depositing $3 billion in the Pakistani central bank to support the country’s foreign exchange reserves.
PM Khan said in a tweet earlier today from his official account that he wants to thank His Royal Highness (HRH) Prince Mohammad bin Salman for supporting Pakistan with the deposit of $3 billion in the State Bank of Pakistan and for “financing refined petroleum product with $1.2 bn”.
“KSA has always been there for Pak in our difficult times including now when world confronts rising commodity prices,” the premier said in his tweet.