November 30, 2023
1 min read

Saudi Extends Term of $3B Deposit to Pakistan

Originally inked in 2021, the agreement underwent subsequent renewals in 2022, with the funds deposited into Pakistan’s central bank aimed at shoring up the financially strained nation’s reserves…reports Asian Lite News

The Saudi Fund for Development (SFD) has extended the duration of its $3 billion deposit to Pakistan by an additional year, as disclosed by the State Bank of Pakistan in a statement released on Wednesday.

Originally inked in 2021, the agreement underwent subsequent renewals in 2022, with the funds deposited into Pakistan’s central bank aimed at shoring up the financially strained nation’s reserves.

This extension is anticipated to fortify Pakistan’s position in future discussions with the International Monetary Fund (IMF) regarding the phased disbursement of the remaining $3 billion in funding.

Dr. Khaqan Hassan Najeeb, a former advisor to Pakistan’s ministry of finance, commented, “Certainly, the rollover helps solidify the IMF agreement as we move closer to meeting the gross financing needs of the country. This should help pave the way for the next tranche of $700 million as the board approval comes through.”

Securing external financing has been a crucial stipulation set by the IMF in the deal struck with Pakistan in July. At that time, Pakistan was on the verge of sovereign debt default and faced a balance of payments crisis. The initial disbursement by the IMF was $1.2 billion, and subsequent talks in Islamabad led to a staff level agreement, clearing the path for the release of an additional $700 million. The remaining $1.1 billion will necessitate further negotiations in the coming months before the program concludes around March.

ALSO READ: US offers air defence version of Stryker fighting vehicles to India

Previous Story

India-UN Development Fund Exemplifies South-South Cooperation

Next Story

HRW Slams Pakistan on Abuses Against Afghan Refugees

Latest from -Top News

Zero Tariffs? Trump Claims Big Win Over India

Trump Claims India to Eliminate Tariffs on U.S. Imports..reports Asian Lite News U.S. President Donald Trump announced on Tuesday that India has either already removed or is in the process of removing

UNSC Grills Pakistan Over Pahalgam Attack

Though Pakistan claimed that the meeting largely served and achieved the objectives of the UNSC’s meeting, reports showed that it flopped miserably…reports Asian Lite News The United Nations Security Council (UNSC) reportedly

Pakistan’s Terror Link “No Secret”: Bilawal Bhutto

Zardari stated that Pakistan’s intelligence services have since changed course and no longer collaborate with extremist elements..reports Asian Lite News Bilawal Bhutto Zardari, former Foreign Minister of Pakistan, has openly acknowledged Pakistan’s

Islamists Rise Under Yunus Rule

After the departure of former Prime Minister Sheikh Hasina in August 2024, Islamic parties in Bangladesh, crushed for years by the Awami League government, have made inroads into the political arena…writes Baidya
Go toTop

Don't Miss

Xi’s Grand Dream Faces Reality Check 

Some Western leaders naively hope China can resolve conflicts, like

Forced Exodus in Pakistan

Pakistan has a population of 24 crores 41 lakh, out