Saudi Arabia defers $3 billion loan repayment for Pakistan
The $3 billion loan was initially deposited by Saudi Arabia in 2021 to help stabilize Pakistan’s foreign exchange reserves.
ISLAMABAD: Saudi Arabia has agreed to defer the repayment of a $3 billion loan to Pakistan for an additional year, providing much-needed relief to the country’s struggling economy.
The State Bank of Pakistan (SBP) confirmed on Thursday that the Saudi Fund for Development (SFD) has extended the loan repayment deadline, which was originally due today. This marks the third time Saudi Arabia has rolled over the repayment, following similar extensions in 2022 and 2023.
The $3 billion loan was initially deposited by Saudi Arabia in 2021 to help stabilize Pakistan’s foreign exchange reserves. This deferment comes at a critical time as Pakistan continues to grapple with financial challenges and inflationary pressures.
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The SBP’s statement acknowledged Saudi Arabia’s continued support for Pakistan, highlighting the positive impact of this extension on the country’s economic stability.
