Karachi. The State Bank of Pakistan (SBP) has confirmed receiving of another $ 1 billion from Saudi Arabia as a part of its $ 3. Billion financial support to Pakistan
Saudi Arabia had deposited with Pakistan ‘s SBP the first tranche of $ 2 billion a few days ago. With transfer of the second tranche of $ 1 billion , Saudi Arab”s commitment with Pakistan to provide it financial support of $ 3 billion stands fulfilled.
Saudi Arabia has also rolled over its precious deposit of $ 5 billion for Pakistan for another term of three years. Saudi support for Pakistan will help Islamabad absorb shocks of the ME war without any major problem.
Saudi Arabia ‘s financial help will also enable Islamabad to maintain its forex reserves at a reasonable level and pay back $ 3.5 billion to the United Arab Emirates (UAE).
UAE, which is apparently in financial pressure due to the on-going Iran-US war in the Middle East (ME) , had demanded of Pakistan to return its $ 3.5 billion deposited for financial support at a time when Islamabad like all other countries is facing huge financial impact of the Iran-US war.
In time financial support of Saudi Arabia has helped Pakistan pay back entire financial deposits to UAE without any shock that in other case could erode the value of the local currency massively.