Pakistan government is mulling over repaying Saudi loan amounting to US$ 2 billion in order to further stabilize and sustain decent foreign exchange reserves of the country.
According to government sources, Pakistan is looking up towards returning US$ 2 billion Saudi loan to maintain gross foreign exchange reserves at the current US$ 12 billion mark.
As per details, the Saudi Arabian loan package is worth up to US$ 6.2 billion in total and had played an extensive role in PM Imran Khan’s government to narrowly escape from defaulting on various international loan payments.
Ministry of Finance has stressed that Saudi loan package is a confidential bilateral matter between Pakistan and Saudi Arabia.
Pakistan is expected to repay Saudi loan by next month, said a senior government official.
Finance Ministry sources say that Pakistan hoped for extension for loan payments from Saudi Arabia and UAE, however chances for loan extension are fairly low.
The development comes as Saudi Arabia’s financial assistance package for Pakistan included US$3 billion in cash and another US$ 3 billion in the form of annual oil and gas supply on deferred payments.
Pakistan paid 3.2 per cent interest on the US$ 3 billion provided by Saudi Arabia, meanwhile the oil facility remains suspended. Pakistan has already paid back US$ 1 billion Saudi loan in May 2020.
