Pakistan government gets the relief of $6 billion in loans from Saudi Arabia to combat the situation of economic crisis in the country. The loan amount of $3 billion is in foreign currency for a time period of 1 year while another $3 Billion is extended in deferred payment.
The loan received by Saudi Arabia will help in the reducing the bailout for Pakistan from the International Monetary Fund (IMF). The agreement between the two countries is done on the Saudi investment conference which was boycotted by several leaders to mourn for the death of a Saudi writer in Istanbul.
Before the meet, Pakistan’s new Prime Minister Imran Khan said that he is looking forward to adding up his country’s foreign currency reserve which is record low in the last four years.
Finance minister of Pakistan Asad Umar said that Pakistan is in talks with the IMF for the second’s bailout in five years as a result of which negotiations will be done on November 7. Talking about the agreement, he said in a statement about done with the Saudi Arabia.
He said, “It was agreed Saudi Arabia will place a deposit of $3 billion for a period of one year as a balance of payment support”.
“It was also agreed that a one year deferred payment facility for import of oil, up to $3 billion, will provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter”, he added further. After Saudi Arabia, Khan is scheduled to visit China next week.