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Saudi Arabia to deposit $3bn in State Bank Pakistan

27 Oct, 2021
Prime Minister Imran Khan met with Saudi Crown Prince Mohammad bin Salman. SPA
Prime Minister Imran Khan met with Saudi Crown Prince Mohammad bin Salman. SPA

Saudi Arabia has revived its economic support to Pakistan with $3 billion in safe deposits and $1.2bn to $1.5bn worth of oil supplies on deferred payments.

This was tweeted by Information Minister Fawad Chaudhry on Wednesday morning in which he also included two links to Arabic press releases by the Saudi Press Agency announcing the details. The agreement was made during Prime Minister Imran Khan's visit to Riyadh and a formal press conference will be held on the subject by his finance team.

This was also confirmed by the prime minister's advisor Shaukat Tarin who tweeted the information.

The Prime Minister also tweeted his thanks to Crown Prince Mohammad bin Salman on Wednesday.

As reported by Reuters, earlier Saudi Arabia had provided a $6 billion financial package, including $3 billion deposits into the State Bank of Pakistan and the remaining $3 billion for oil facility on deferred payment on an annual basis.

The previous oil facility from KSA was signed for three years during the visit of Prince Bin Salman to Pakistan. This facility was made operational from July 2019 with the understanding that the first-year bill would be paid on monthly basis and then second-year oil would be obtained on deferred payment.

The facility was agreed upon for three years with the possibility of rollover of second and then the third year. Both sides had agreed that this facility would be provided through the IDB’s Islamic Trade Finance Facility (ITFC). It is not known how much Pakistan had availed in its first year, and the facility was later suspended.