Summary Due to the rollover of this debt, Pakistan's external financing needs decreased to $21.5 billion this year, with interest payments on foreign loans reducing by half a billion dollars.
ISLAMABAD (Dunya News) - The State Bank of Pakistan (SBP) has said Saudi Arabia has rolled over Pakistan’s $5billion loan for three years, which has reduced the pressure on Pakistan to make immediate payments.
According to the State Bank of Pakistan, Saudi Arabia has deposits worth $8billion. Pakistan received $3billion from Saudi Arabia in April this year. This loan was given to Pakistan by Saudi Arabia for three months, from which Pakistan made payments to the United Arab Emirates.
Due to the rollover of this debt, Pakistan's external financing needs decreased to $21.5 billion this year, with interest payments on foreign loans reducing by half a billion dollars.
Loans worth $2.2billion have been repaid in July, refinancing of a $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.
The target has been set for foreign exchange reserves to reach $20.2 billion by December 2026.
