Saudi Arabia Agrees to Loan Pakistan $3b as Balance of Payment Support for One Year

Saudi Arabia has agreed to provide Pakistan 3 billion dollars in foreign currency support for a year to address its balance-of-payments crisis, the government announced on Tuesday.

The Kingdom has also agreed to provide Islamabad with a one-year deferred payment facility for import of oil, worth up to $3 billion.

The agreements in this regard were signed during the visit of Prime Minister Imran Khan to Saudi Arabia to attend the Future Investment Initiative (FII) Conference, a trip he undertook on the invitation of Custodian of Two The Holy Mosques King Salman.

According to a press release issued by the government, It was agreed that Saudi Arabia will place a deposit of US $3 billion for a period of one year as balance-of-payment support.

It was also agreed that a one-year deferred payment facility for import of oil, up to $3 billion, will be provided by Riyadh. This arrangement will be in place for three years, after which it will be reviewed.

Saudi Arabia also “confirmed its interest” in investing in a petroleum refinery in Pakistan. The Kingdom also expressed interest in the development of mineral resources in Pakistan.