Pakistan on Saturday received a $3 billion loan from Saudi Arabia, the prime minister’s finance adviser said, as part of an economic support package.
The South Asian country has faced growing economic challenges, with high inflation, sliding forex reserves, a widening current account deficit and a depreciating currency.
Shaukat Tarin, finance adviser to Pakistan's prime minister Imran Khan, said in a tweet: “I want to thank His Excellency Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture.”
The loan from Saudi Arabia will be for one year at a 4 percent interest rate under the terms of the package, which was signed last month.
“This is positive news ... and will help bolster both the foreign exchange reserves and sentiments in the forex market,” Saad Hashemy, executive director at BMA Capital said.
The loan comes a week after the International Monetary Fund agreed with Pakistan on measures needed to revive a stalled $6 billion funding program.
The completion of the review, pending since earlier this year, would make available 750 million in IMF special drawing rights, or around $1 billion, bringing total disbursements so far to about $3 billion.
Pakistan’s central bank has raised its benchmark interest rate by 150 basis points to 8.75 percent to counter inflationary pressures.
Inflation had reached 11.5 percent in November, up from 9.2 percent a month earlier.
The Pakistani rupee, which closed on Friday at 176.77 at inter-bank against a dollar, has depreciated more than 11 percent since the start of this year.
IMF revives $6 bln bailout for Pakistan’s economyThe International Monetary Fund agreed to revive a $6 billion bailout package for Pakistan, providing a major relief to its struggling ... Economy
Pakistan again lifts ban, fourth so far, on China’s TikTokPakistan’s media regulating authority on Friday again lifted a ban on TikTok, this time after four months, following assurances from the popular ... Technology
Ariana Afghan Airlines begins flights from Kabul to Pakistan’s IslamabadAriana Afghan Airlines is beginning regular twice-weekly services from Kabul to Islamabad, the state-owned operator said on Thursday, joining Kam Air ... World News
Afghanistan ‘at the brink of economic collapse,’ Pakistan’s FM warnsAfghanistan is “at the brink of economic collapse” and the international community must urgently resume funding and provide humanitarian assistance, ... World News
India hosts security talks on Afghanistan boycotted by Pakistan, ChinaIndia on Wednesday hosted senior security officials from Russia, Iran and five Central Asian countries to discuss the situation in neighboring ... World News
Pakistan reopens Chaman border crossing to AfghanistanOne of the main crossings between Afghanistan and Pakistan has reopened after being closed for almost a month, officials said on Tuesday, offering ... World News
Pakistan will provide $280 million in humanitarian aid to Taliban-led Afghanistan: FMPakistan's foreign minister Shah Mahmood Qureshi said on Thursday his country will provide humanitarian aid worth $280 million to Afghanistan to ... World News