Islamabad (Commerce Desk): Saudi Arabia has extended the term of a loan worth more than $3 billion for Pakistan, reducing the immediate pressure of external payments on the country. The Federal Finance Minister has also confirmed this development.
According to sources, Saudi Arabia had provided this amount to Pakistan for payments owed to the United Arab Emirates, with an initial repayment period of three months.
After the extension of the loan term, Pakistan has received significant short-term financial support, while external payment matters will become easier.
According to State Bank officials, after the rollover of $5 billion in loans, the country’s foreign exchange reserves have improved further and immediate financial pressure has been significantly reduced.