December 14, 2018 (MLN): Saudi Arabia has transferred another $1 billion to Pakistan as the second tranche of total bailout package worth $3 billion, the State Bank of Pakistan confirmed today.
A Memorandum of Understanding (MoU) was signed between Finance Minister Asad Umar and the Saudi Finance Minister, Muhammad Abdullah Al-Jadaan in October, under which it was agreed that Saudi Arabia will place a deposit of $3 Billion for a period of one year as balance of payment support to Pakistan.
Saudi Arabia was expected to give the total amount in three installments. The first tranche of this support package was paid in mid-November, while the third and last installment is expected in mid-January, 2019.
The foreign exchange reserve has depleted rapidly in the last three months, and about $1 billion has been wiped out since the arrival of first financial assistance of $1 billion.
State Bank reserves have slipped to $7.2 billion following the debt and interest repayments. Following the arrival, the reserves will get a boost of $1 billion.
Based on foreign exchange reserve figures released by the State Bank of Pakistan yesterday, the receipt of this amount should boost Pakistan’s total reserves to around $14.75 billion.
