Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Pakistan receives $3 billion loan from Saudi Arabia

12/04/2021 | 10:56pm EST
Saudi Arabia's Crown Prince Mohammed bin Salman meets with Pakistani Prime Minister Imran Khan in Riyadh

KARACHI, Pakistan (Reuters) - 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.

Pakistan's total liquid foreign reserves stand at $22,498.8 million, based on central bank data.

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% 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 programme.

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% to counter inflationary pressures.

Inflation had reached 11.5% in November, up from 9.2% a month earlier.

The Pakistani rupee, which closed on Friday at 176.77 at inter-bank against a dollar, has depreciated more than 11% since the start of this year.

(This story corrects reserves in third paragraph from billion to million)

(Reporting by Syed Raza Hassan. Editing by Jane Merriman)

By Syed Raza Hassan


ę Reuters 2021
Latest news "Economy & Forex"
01:34aBANK OF UGANDA : Announcement of the Death of the Governor, Bank of Uganda
PU
01:18aNew Zealand PM Jacinda Ardern cancels her wedding amid new Omicron restrictions
RE
01:14aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China's crude oil output rises in 2021
PU
01:06aChina's Beijing orders more COVID tests as cases mount before Olympics
RE
01:05aChina's Beijing orders more COVID tests as cases mount before Olympics
RE
12:31aSaudi digital security firm Elm seeks to raise up to $820 mln at IPO
RE
12:28aS.Korea reports second-highest COVID count ahead of holiday
RE
12:01aIndia's COVID-19 cases rise by 333,533 in last 24 hours - govt
RE
01/22South Korea says Iran to regain UN vote after delinquent dues paid with frozen funds
RE
01/22PRIME MINISTER OFFICE OF INDIA : PM pays homage to Shri Balasaheb Thackeray on his Jayanti
PU
Latest news "Economy & Forex"