RIYADH: Saudi Arabia has postponed the repayment of Pakistan’s $5 billion loan for 3 years, the State Bank said that the rollover of $5 billion has reduced the pressure on Pakistan to make immediate payments.
According to the State Bank, Pakistan has deposits of $8 billion from Saudi Arabia, Pakistan received $3 billion from Saudi Arabia in April this year, Pakistan’s external financial requirements have reduced to $21.5 billion this year.
Interest payments on foreign loans have decreased by about half a billion dollars, loans of $2.2 billion have been repaid in July, refinancing of $1.3 billion commercial loan from China is expected next month, the State Bank bought $9 billion from the open market in the last fiscal year. A target has been set for foreign exchange reserves to reach $20.2 billion by December 2026.
