S.Arabia transfers second installment of one billion dollars to Pakistan

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ISLAMABAD: Saudi Arabia has transferred second installment of one billion dollars to Pakistan and foreign exchange reserves of State Bank of Pakistan (SBP) have scaled up to 8.26 billion dollars following release of this installment.
According to finance ministry sources third tranche of one billion dollars under Saudi Package will be received by Pakistan in the month of January.
Earlier SBP had confirmed the receipt of first installment of one billion dollars during the month of November.
It was announced during Prime Minister (PM) Imran Khan visit to Saudi Arabia on October 23 that Saudi Arabia had agreed to extend aid package of 12 billion dollars to Pakistan.
During the visit a Memorandum of Understanding (MOU) was signed between Saudi finance minister Mohammad bin Abdullah Al-Jadaan and foreign minister Asad Umar under which Saudi Arabia showed its willingness to deposit 3 billion dollars in Pakistan account for one year in order to prop up balance of payments.
On the other side it was also agreed that Saudi Arabia on the basis of deferred payment will supply oil costing 3 billion dollars per year. Supply of oil will continue for 3 years. Later the matter will be reviewed again.
The economic wizards are of opinion that pressure on Pakistan foreign exchange reserves will be eased and rupee value will also go stable in comparison with dollar due to transfer of this amount to Pakistan.
The government is striving to narrow down current account deficit and it has held talks with China and IMF on this count.

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