US EditionPakistan Secures $3 Billion Saudi Deposit as UAE Repayment Nears
The support will help Pakistan cover a $3.5 billion UAE repayment and lift reserves toward $18 billion, finance minister Muhammad Aurangzeb said.
- On Wednesday, Saudi Arabia committed an additional $3 billion deposit to Pakistan and extended an existing $5 billion facility for longer tenure, announced by Finance Minister Muhammad Aurangzeb in Washington.
- Pakistan faces immediate pressure as it prepares to repay $3.5 billion to the United Arab Emirates by month-end, straining foreign exchange reserves at $16.4 billion as of March 27.
- Aurangzeb noted Pakistan recently repaid a $1.4 billion Eurobond, describing it as a 'non-event,' while targeting reserves of around $18 billion to meet International Monetary Fund commitments.
- Disbursement of the new $3 billion deposit is expected next week, while the existing $5 billion facility will no longer require annual rollover arrangements, providing Pakistan greater financial stability.
- Pakistan is simultaneously advancing a Global Medium-Term Note programme and inaugural Panda Bond issuance to diversify funding sources, amid expanding cooperation with Saudi Arabia in recent years.
37 Articles
37 Articles
Saudi Arabia picks up Pakistan’s tab again
The extra cash comes just before Islamabad sends a $3.5 billion debt repayment to Saudi Arabia’s friend-turned-rival, the UAE. This isn’t the first time that Saudi Arabia has provided Pakistan, a relatively poor country with a mighty military, with funding. In 2018, Riyadh gave Pakistan a rescue package worth $6 billion as it faced an economic crisis. What’s the benefit to the Saudis? Pakistan provides the Kingdom with security by placing it und…
Saudi Arabia announces $3b additional support, extends $5b deposit: Finance Minister
The Kingdom of Saudi Arabia on Wednesday pledged $3 billion in deposits, with disbursement expected in the coming week, and the existing $5 billion Saudi deposit will no longer be subject to the previous annual rollover arrangement but will instead be extended for a longer period, the Ministry of Finance said. According to a press release, Finance Minister Aurangzeb made the announcement while speaking to the media in Washington, DC, on the side…
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