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Cabinet approves circular summary to keep Saudi Arabia’s $3 billion in SBP

Imran Khan MBS

File photo of Pakistan’s Prime Minister Imran Khan and Saudi Crown Prince Mohammed bin Salman. Image: Twitter

ISLAMABAD: The federal cabinet through a circulation summary on Saturday gave State Bank of Pakistan approval to keep $3 billion deposit from Saudi Arabia.

A day earlier, Minister for Information and Broadcasting Chaudhry Fawad Hussain, in a tweet, had said that all legal requirements to receive the $3 billion dollars from the kingdom would be completed during the week.

After Prime Minister Imran Khan’s visit to Saudia Arabia last month, the kingdom had announced an economic package for Pakistan.

According to the announcement, the Saudi Fund for Development (SFD) will deposit $3 billion in the State Bank of Pakistan to support the foreign exchange reserves and deal with the coronavirus pandemic.

Also read: China offers Pakistan $1.5 billion to repay Saudi Debt

The SFD announced on October 26 that $3 billion would be deposited in the State Bank of Pakistan (SBP) on royal directives to safeguard foreign exchange assets and address the issues facing the Pakistani government in dealing with the pandemic.

“According to the royal directive, Pakistan will also be provided with a fund worth $1.2 billion in oil business within a year,” said the statement.

It added that “these royal directives are strong evidence of Saudi Arabia’s position on strengthening the economy of the brotherly country of Pakistan – the kingdom is still taking steps to stabilize Pakistan’s economy as usual.”

It is worth mentioning here that the government of Saudi Arabia has in the past not only provided financial assistance to Pakistan but also ensured the supply of oil on late payment.

 


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