Pakistan Secures $4.2 Billion Loan Facility from Saudi Arabia

The government of Pakistan has secured a $4.2 billion loan facility from Saudi Arabia to alleviate pressure on the exchange rate and balance-of-payments position.

Adviser to the Prime Minister on Finance Shaukat Tarin said that Saudi Arabia will deposit $3.2 billion in the State Bank of Pakistan's account, while also providing $1.2 billion worth of oil on deferred payment.

The adviser noted that the phenomenal increase in oil and commodity prices has put immense pressure on the exchange rate and created inflationary pressures, which the government is struggling to cope with.