Karachi: Pakistan has received its second bailout package worth USD 1 billion from Saudi Arabia, a news source quoted State Bank spokesman Abid Qamar. Another Saudi financial package is expected to arrive in January 2019.
During his visit to Saudi Arabia, Prime Minister Imran Khan had secured a bailout package to help address Pakistan’s balance of payments crisis. Riyadh had pledged USD 3 billion for a year. Riyadh had also agreed to provide a one-year deferred payment facility for import of oil worth USD 3 billion.
The first tranche worth USD 1 billion was transferred to the State Bank on November 9, but the amount had recently run out. With the arrival of the second tranche, the central bank’s reserves were shored up at well over USD 7 billion.
Saudi Arabia is also investing in various development projects in Pakistan. It recently pledged to execute the PKR 2 billion Mansehra water supply scheme that was abandoned by Japan International Cooperation Agency.