In a major boost for Pakistan's economy, Islamabad has received a tranche of $2 billion from Saudi Arabia, Finance Minister Ishaq Dar confirmed on Tuesday.
"State Bank of Pakistan (SBP) has received (a) deposit of USD 2 billion from the Kingdom of Saudi Arabia. This inflow has increased the forex reserves held by SBP and will accordingly be reflected in the forex reserves for the week ending 14 July 2023," Dar wrote on Twitter.
The development is important for Pakistan given that funds from Riyadh come at a time when the International Monetary Fund (IMF) has sought guarantees from Islamabad's partners for the disbursal of a $3 billion financial package agreed between the two parties last month.
This came after months of dilly-dallying as the global lender raised questions about the cash-strapped nation's ability to repay the loan.
The Kingdom had previously pledged support to Islamabad but was awaiting a formal announcement by the IMF regarding the $3 billion assistance program to aid Pakistan's economy.
Expressing his gratitude to Saudi Crown Prince Mohammed bin Salman, Pakistan Prime Minister Shehbaz Sharif said that the monarchy's financial support to Islamabad would strengthen the South Asian country's forex reserves.
"It reflects the growing confidence of our brotherly countries and the international community in Pakistan's economic turnaround. We remain committed to making all necessary efforts to improve Pakistan’s economy," the Pakistan premier said.