ISLAMABAD: On Friday, the Minister of Finance Shaukat Tarin revealed the details about the $3 billion loan from Saudi Arabia during the Senate session. According to his statement, the loan has to be returned within a year’s time.
The loan was transferred to the State Bank of Pakistan (SBP) after a successful agreement with Saudi Fund for Development (SFD).
Under the agreement, Pakistan was to receive worth $100 million per month from the Saudi Fund Development (SFD) to purchase the petroleum products over the span of one year. The purchase was proposed to be done on deferred payments. Of the total $3 billion loan, $1.2 – $1.5 billion was delegated to purchase petroleum products.
Tarin added that the Saudi government could ask for the loan back in case Pakistan defaulted.
However, he also gave assurance that it would not come down to that. He also commented on the surge in oil prices, stating that the government had tried to safeguard citizens from the effects of increase in petroleum products in the international market.
Regarding the Financial Action Task Force (FATF), the finance minister informed about the completion of 27 conditions of the total 28 tasks. He said that at the upcoming review, Pakistan would hopefully upgrade its status from the grey list.