Saudi Arabia has agreed to provide $4.2 billion to Pakistan in order to help the country’s economy, and deal with the consequences of the coronavirus pandemic.
The Saudi Fund for Development (SFD) said that a royal directive has been issued to deposit $3 billion in the Central Bank of Pakistan. This will help the Pakistani government in maintaining its foreign currency reserves and overcoming the effects of the coronavirus pandemic.
This is the kingdom’s second financial aid package to Pakistan in the last three years, which is aimed at assisting the country in managing a looming external sector crisis.
“The kingdom had extended a similar package valuing at $6 billion in October 2018 to provide a breathing space to Pakistan before the country went to the International Monetary Fund for an extended loan facility,” according to the reports.
According to SFD, another directive has been issued to finance the trade of oil futures worth $1.2 billion this year. “These generous directives confirm the Kingdom’s continued position in supporting the economy of Pakistan,” the SFD statement added.
Pakistan’s Energy Minister Mr. Hammad Azhar said in a tweet that “the Saudi Development Fund has generously announced for Pakistan an oil deferred payments facility of $1.2 billion per annum and a $3 billion deposit with SBP.”
“This will help ease pressures on our trade and forex accounts as a result of global commodities price surge,” he added.
Saudi Fund for Development (SFD)
Saudi Fund for Development is a Saudi government agency that aids developing nations by funding social and infrastructural projects with the goal of improving people’s lives and communities, as well as helping recipient countries’ economies by increasing growth and job possibilities.