Facing financial crisis, Pakistan gets a sigh of relief after receiving $3 billion loan from Saudi Arabia

At a time when Pakistan seems to be under intense international pressure after a Sri Lankan national was lynched by a mob, the country seems to have heaved a sigh of relief on getting $3 billion loan from Saudi Arabia.

Riyadh has again come to Islamabad’s rescue as the loan will alleviate some financial woes. Pakistan has received the loan, which is a part of an economic support package, the prime minister’s finance adviser said on Saturday.

The nation has been reeling under numerous economic challenges, which seem to be growing unabated. The country is witnessing sliding forex reserves, high inflation, widening current account deficit and depreciating currency.

According to the central bank data, total liquid foreign reserves of the country stand at $22,498.8 million.

In a tweet, Shaukat Tarin, finance adviser to Pakistan’s prime minister Imran Khan, said, “I want to thank His Excellency Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture.”

The loan has been given for a year at an interest rate of 4% under the terms of the package, which was signed last month.

Saad Hashemy, executive director, BMA Capital, said, “This is positive news … and will help bolster both the foreign exchange reserves and sentiments in the forex market.”