ISLAMABAD: Saudi Arabia’s has decided to renew $3 billion deposit at the State Bank of Pakistan and in view of this decision the International Monetary Fund (IMF) and Saudi Arabia discussed the possibility of Islamabad being able to borrow up to $2.8 billion against Riyadh’s quota of Special Drawing Rights (SDRs) at the Fund.
“Once finalized, Pakistan’s extent of borrowing from the IMF during the present financial year (July to June) will increase by $2.8 billion. This will be a very important gesture,” the Financial Times reported.
The assistance would help Pakistan secure a $1.2 billion payment from the IMF, whose board is set to meet this month to approve the disbursement. The IMF agreed last month to increase its loan package by $1 billion to $7 billion, but has conditioned the disbursement on assurances that Pakistan receives additional financial support from elsewhere.
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