PTI chief and Prime Minister Imran Khan provided $6 billion Saudi loan from Saudi Arabia on Tuesday (yesterday).
PM Imran Khan secured $6 billion Saudi loan from Saudi Arabia on an annual basis. However, it will be for one year in the form of cash assistance and oil on deferred payments.
PTI’s government gets a much-needed breathing space after PM Imran Khan secured the agreement. However, it is the second time when Saudi Arabia bailed out Pakistan during last 4 years. The government may still have to avail IMF bailout as the Saudi assistance will not address the long-term financing needs of the economy.
However, the foreign office announced key details after end of 2 day visit of PM Imran Khan to Saudi Arabia. In addition, the Saudi assistance will immediately make official foreign currency reserves back to double digit and will also reduce the stress on the external sector.
Saudi Arabia will provide $3 billion cash deposits to State Bank of Pakistan. In addition, according to the Foreign Office, they will also provide the one one-year deferred payment facility for the import of oil, worth up to $3 billion.
According to sources, the visa fees for Pakistanis will be also reduced.