Saudi Arabia announces $4.2bn support to Pakistan

October 27, 2021 (MLN): Saudi Arabia has announced its financial support of $4.2 billion to Pakistan to help ease pressure on trade and increase foreign currency reserves.

The financial assistance includes a $3bn deposit in the State Bank of Pakistan while $1.2bn to finance the oil derivative trade throughout the year.

Acknowledging the generous support of the Saudi government, Prime Minister said, “I want to thank HRH Prince Mohammad bin Salman for supporting Pak with $3 bn as deposit in Pak's central bank & financing refined petroleum product with $1.2bn.

“KSA has always been there for Pak in our difficult times incl now when the world confronts rising commodity prices,” he tweeted.

This latest development came at a time when Prime Minister Imran Khan had returned from his three-day visit to Saudi Arabia.

In a midnight tweet, Fawad Chaudhry, Information Minister said, “Saudi Arabia announcement support Pakistan with 3 billion US dollars as deposit in Pakistan central bank and also financing refined petroleum product with 1.2 billion US dollars during the year.”

“The Saudi Fund for Development (SFD) announced the issuance of the Royal Directive to deposit an amount worth of US$3 billion into the State Bank of Pakistan to help the Pakistani government support its foreign currency reserves and support it in facing the impacts of the coronavirus pandemic,” according to the Saudi press agency.

The SFD added that, in addition, the royal directive was issued to finance the oil derivatives trade with a total amount of US$1.2 billion throughout the year.

These royal directives confirm the Kingdom of Saudi Arabia's ongoing stance in supporting the economy of the sisterly Republic of Pakistan, it noted.

Taking to his Twitter handle, Hammad Azhar, Minister for Energy stated, “Saudi Development Fund has generously announced for Pakistan an oil deferred payments facility of $1.2bn/annum and a $3 bn deposit with SBP."

This will help ease pressures on the country's trade and forex accounts as a result of the global commodities price surge, he concluded.

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