ISLAMABAD: Pakistan's finance chief Shaukat Tarin said on Saturday the country's central bank had received a deposit of $3 billion from Saudi Arabia amid a difficult financial situation while thanking the kingdom for its "kind gesture."
Saudi Arabia agreed to provide economic assistance of $4.2 billion in the form of cash and deferred oil payment facility to Pakistan during Prime Minister Imran Khan's recent visit in October.
The kingdom announced to deposit $3 billion in the State Bank of Pakistan (SBP) and supply $1.2 billion worth of oil to the country on credit.
"Good news, US$3 billion Saudi deposit received by SBP," Tarin wrote in a Twitter post. "I want to thank His Excellency Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture."
Saudi Arabia also decided to shore up Pakistan's economy by offering an identical package back in 2019 when Prime Minister Khan's new administration was grappling with a huge current account deficit and balance of payment crisis.
Pakistan's currency and equity markets witnessed a significant decline on Thursday as benchmark KSE-100 index nosedived by more than 4.7 percent to 2,134 points and the Pak rupee hit a new all-time low of Rs176.42.
Analysts attributed the market crash to soaring trade deficit, extreme inflationary pressure and rising interest rates.
Tarin mentioned the weakening Pakistani currency while addressing the media in Karachi last month, saying the government was taking measures to ensure the movement of rupee in the other direction.
The Saudi deposit is expected to provide some financial relief to the country, though experts have long maintained that Pakistan needs to address its mounting trade deficit to gain some economic strength.