On Thursday, Saudi Arabia extended the repayment deadline for a $3 billion loan deposited with the State Bank of Pakistan (SBP) by one year, offering relief to Pakistan’s struggling economy.
The SBP confirmed that the Saudi Fund for Development (SFD) had granted the extension, which was originally due for repayment today. The loan, initially deposited by Saudi Arabia in 2021, has now had its repayment period extended for the third time, following similar deferrals in 2022 and 2023.
In related news, Pakistan’s foreign exchange reserves reached their highest point in three years, reaching $16.62 billion, according to the latest SBP data. This increase was partly due to a $500 million loan from the Asian Development Bank (ADB), which boosted the SBP’s reserves by $620 million, bringing the total to $12.04 billion. However, deposits in commercial banks dropped by $76 million to $4.58 billion.
This development marks Pakistan’s successful fulfillment of another key condition set by the International Monetary Fund (IMF), contributing to the country’s economic stability. The SBP highlighted that this achievement demonstrates Pakistan’s progress in meeting international financial commitments.
