MOSCOW (Sputnik) - The State Bank of Pakistan on 14 December received a second $1 billion deposit from Saudi Arabia in a little over a month, which is part of a pledged $3 billion in bailout money aimed at addressing the nation’s balance-of-payments crisis, the bank’s spokesman said, according to the Dawn newspaper.
The Dawn newspaper cited the bank official as saying that the third tranche would come next month. The Kingdom also promised Pakistan deferred payment facility for oil import worth up to $3 billion.
Pakistan’s foreign debt load passed the $90 billion mark this year. Most of it is owed to China, which has invested tens of billions in local infrastructure as part of its Belt and Road initiative.
Earlier in October, Pakistani Prime Minister Imran Khan stated the country hoped to secure loans from the International Monetary Fund (IMF) and friendly countries for debt payments and to boost exports. He stated that Pakistan had applied for an IMF program to receive the necessary funds.
Along with the debt crisis, lack of human development, inequality, problems in the system of education, water shortage and climate changes have been also mentioned by the Prime Minister as key to Pakistan's problems.