Islamabad: Saudi Arabia has transferred $1 billion to Pakistan according to a MoU. This is the last tranche of $3 billion Saudi Arabia promised to provide with Pakistan to strengthen the Pakistani economy.
Last year, Pakistani Prime Minister, Imran Khan visited Saudi Arabia and signed a MoU with Saudi Government. According to the MoU between two countries, Saudi Arabia announced to provide Pakistan with $12 billion to strengthen Pakistani rupee against the US dollar.
In this context, Saudi Arabia deposited the first tranche of $3 billion i.e. $1 billion to the State Bank of Pakistan on 19th November last year. While the second tranche i.e. $1 billion was transferred to Pakistan on 14th December 2018.
According to the State Bank spokesperson, Saudi Arabia has transferred the last tranche of $3 billion i.e. $1 billion to Pakistan. So, Pakistan has received $3 billion from Saudi Arabia so far.
The experts say that this timely aid from our friend country will raise foreign reserves of Pakistan that have exceeded to $15 billion. The State Bank spokesperson further explained that the central bank reserves have exceeded to $8.86 billion.
The State Bank representative also explained that Pakistan is going to pay 3% interest annually on this aid. The basic purpose of this MoU is to meet the financial crisis in Pakistan and to strengthen the Pakistani rupee.
The rate of Pakistani rupee declined rapidly when the new Government established in Pakistan. However, the friends of Pakistan are trying to pull Pakistan out of the horrible financial crisis. The UAE has also transferred $1 billion to Pakistan according to the agreement. Pakistan will pay 3.18% annual interest on it.