Saudi Arabia will deposit $3 billion in Pakistan’s foreign reserves in a week or so for one year at 4% interest under a support package signed on November 29, Pakistan’s finance ministry spokesman said, Report informs referring to Reuters.
The South Asian nation has faced growing economic challenges with sliding foreign reserves, a widening current account deficit, a depreciating currency and high inflation.
Headline inflation had reached 9.2% in October, up from 8.4% two months earlier, and the Pakistani rupee that closed at 175.72 at inter-bank against a dollar has depreciated over 11% since the start of this year.
Pakistan’s total liquid foreign reserves stand at $22.77 billion, according to the central bank.
The Saudi support package that included a $1.2 billion oil loan facility was agreed during Prime Minister Imran Khan’s visit to Riyadh last month.