[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The Kingdom of Saudi Arabia (KSA) has deposited $2 billion into the State Bank of Pakistan (SBP) account, according to Finance Minister Ishaq Dar on Tuesday.
Later, he tweeted, “The Kingdom of Saudi Arabia has deposited $2 billion with the State Bank of Pakistan (SBP). This influx has enhanced SBP’s foreign exchange holdings, which will be reflected in the foreign exchange reserves for the week ending July 14, 2023.
State Bank of Pakistan (SBP) has received deposit of $2 billion from the Kingdom of Saudi Arabia. This inflow has increased the forex reserves held by SBP and will accordingly be reflected in the forex reserves for the week ending 14July2023.
— Ishaq Dar (@MIshaqDar50) July 11, 2023
Dar also expressed gratitude to all parties concerned, praising KSA in particular for extending the finance opportunity to Pakistan.
State Bank of Pakistan (SBP) has received deposit of $2 billion from the Kingdom of Saudi Arabia. This inflow has increased the forex reserves held by SBP and will accordingly be reflected in the forex reserves for the week ending 14July2023.
— Ishaq Dar (@MIshaqDar50) July 11, 2023
With this influx, there is a real chance that the struggling nation may soon receive a significant bailout from the International Monetary Fund (IMF).
Relevantly, the influxes also show that Pakistan’s external liquidity and financial conditions have improved since its Staff-Level Agreement (SLA) with the IMF on a nine-month Stand-by Arrangement (SBA) in June.
Also Read: IMF deal is not a long-term solution: Planning Minister.
However, given the prevailing political climate and the substantial external financial requirements, there are still dangers associated with programme implementation and external funding.
On Wednesday, July 12, the Executive Board of the Lender will convene and most likely approve the disbursement of the $1.1 billion initial tranche.[/vc_column_text][/vc_column][/vc_row]
