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$1b second installment of Saudi aid received

Pakistan on Friday received the second tranche of $1 billion from Saudi Arabia after which the foreign exchange reserves stood at $8.26 billion.

A spokesperson for the State Bank of Pakistan confirmed the development and said the country will receive the third installment in mid-January. Last month, the State Bank of Pakistan had confirmed receiving the first $1 billion from Saudi Arabia.

During Prime Minister Imran Khan’s visit to the Kingdom on October 23 it was announced that Saudi Arabia had agreed to provide a $12 billion package to Pakistan to support its ailing economy.

The package included $3 billion balance of payments support and $3 billion in deferred payments on oil import.

According to experts, the aid will reduce the pressure on Pakistan’s foreign currency reserves and the value of rupee might rise against the US dollar.