'Good news': Shaukat Tarin confirms SBP's receipt of $3bn deposit from Saudi Arabia
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Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin announced on Saturday that the State Bank of Pakistan (SBP) had received Saudi Arabia's $3 billion deposit and thanked the kingdom and its crown prince for the "kind gesture".
"Good news, $3bn Saudi deposit received by SBP. I want to thank His Excellency Crown Prince Mohammed Bin Salman and [the] kingdom of Saudi Arabia for the kind gesture," the adviser tweeted.
The agreement was reached during Prime Minister Imran Khan's visit to the kingdom in October. Apart from the support package, Saudi Arabia had also agreed to provide $1.2bn worth of oil supplies on deferred payments.
The deal cleared its last legal hurdle last month when its summaries were approved by the prime minister and the cabinet.
On Monday, the SBP signed the agreement with the Saudi Fund for Development to receive the amount, which would be placed in the SBP’s account with an aim to improve its foreign exchange reserves.
When the SBP was officially contacted to know the agreed rate of return on the Saudi fund as there were massive speculations in the financial market about the rates being given on $3bn, it had stated: “As per agreement all terms are confidential and cannot be revealed without the consent of both the parties.”
The issued press release had further stated the fund would help support Pakistan’s foreign currency reserves and contribute towards resolving the adverse effects of the Covid-19 pandemic.
The SBP said the deposit agreement reflected the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and would further augment the economic ties between the two brotherly countries.
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Comments (87) Closed
Dec 04, 2021 03:44pm
$3bn loan at 4%, attached with humiliating terms and cant even spend the money. Wow, great news indeed. Let’s celebrate
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Dec 04, 2021 03:45pm
Why don't they pay in Riyal or PKR
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Dec 04, 2021 03:45pm
Is it celebration? Borrow money with high interest rate fot not to use.
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Dec 04, 2021 03:46pm
Now, wait for the bad news!
As soon as MBS changes his mood and mind, he will demand repayment of this amount immediately and in full - without even inviting IK to come to Saudi to discuss the change of heart!
It has happened before. So history may yet repeat itself. Never mind, that PKR will swiftly lose another 10% in a single on one phone call from this unpredictable Prince and the nation of 200 million have to live with the consequences.
You are being held hostage till then.
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Dec 04, 2021 03:51pm
Good News??? Please check the level..
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Dec 04, 2021 03:52pm
Wow
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Dec 04, 2021 03:52pm
Best PM ever..thanks IK
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Dec 04, 2021 03:56pm
Good news would be government reduced it's luxuries, good news would be current account deficit decrease to zero, this is just an increase in liabilities, it's a damn loan, where do Tarin will record it in balance sheet ?. The way government is spending even the whole world money would not be sufficient to meet it's ever increasing mega size and out of means lifestyle.
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Dec 04, 2021 04:02pm
Borrowing is good news??
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Dec 04, 2021 04:05pm
What's good about it? We have to return it back with interest.
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Dec 04, 2021 04:09pm
What kind gesture??
This is unbelievable.
4% interest!!
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Dec 04, 2021 04:11pm
Loans, loans and more loans. Who's going to pay back these huge loans and its steep interest?
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Dec 04, 2021 04:16pm
What kind gesture? It’s not a grant but a loan at 4% interest rate higher than what we pay back either the world bank or the Asian development bank.
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Dec 04, 2021 04:19pm
Loan is good news?
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Dec 04, 2021 04:28pm
£3 billion package which is enough for 15 days of import of Pakistan. Pakistan foreign exchange income per month is average £4.50 billion but imports are £6 billion per month. Either increase your export or decrease your import. Just put more import duties on luxury and non essential items to curb imports and increase storage capacity for all essential items with compulsory track and system to install specially on oil, Palm oil, wheat, sugar, cotton etc.
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Dec 04, 2021 04:37pm
Borrowing money is a good news?
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Dec 04, 2021 04:41pm
Celebrating 3 billion dollars loan with 22 crore other..
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Dec 04, 2021 04:45pm
good news? its not free. IK promised another heaven on earth when he took office but apparently the condition of the country has been the worst since partition
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Dec 04, 2021 04:51pm
We mean "Good news for parking", and we pay for it. Brilliant
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Dec 04, 2021 04:54pm
How can such alms be considered as good news.
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Dec 04, 2021 04:58pm
The new colonialism. Begging corrupt tyrants for money and then thanking them. In case it was unsavory enough they tyrant is supposedly the guardian of the faith. Despicable.
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Dec 04, 2021 05:06pm
This is not good news but a news.
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Dec 04, 2021 05:20pm
Bring to task all those corrupt politicians who have robbed the country blindly, recover those monies from offshore accounts and properties and Thier won't be need to ask Arab brothers and Thier temperamental moods.
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Dec 04, 2021 05:20pm
Once a to be Asian tiger had to wait to see this day when, Govt is sharing "Good News" tweets when Pakistan recieved a loan, which cannot be used but to be kept as a deposit & that too on a very tough condition. Its a Shame for the people of Pakistan.
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Dec 04, 2021 05:26pm
Wow. $3 Bn have come. Lets burn more foreigners.
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Dec 04, 2021 05:30pm
You don’t want to talk about the Saudi imposed conditions for default ?
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Dec 04, 2021 05:31pm
Conditions are confidential? Lol
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Dec 04, 2021 05:31pm
It's funny that we call it a good news after receiving hand outs.whats next when this one ends.
Who's next we'll be eyeing on.
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Dec 04, 2021 05:38pm
Please share the complete news, Pakistan will pay interest at a rate of 4% on this amount.
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Dec 04, 2021 05:40pm
@Hp, We can spend it, just be ready to return when demanded. That is what banks all over the world do with savers’ deposits.
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Dec 04, 2021 05:45pm
so this a news to celebrate!!
How come?? Please educate us
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Dec 04, 2021 05:46pm
Shaukat Tarin you should retire and go away
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Dec 04, 2021 05:51pm
@Khaled , SBP gets liquidity in dollars to pay interest on external loans, pay for loans and healthy fx enables getting loans from money markets for lowere rate.
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Dec 04, 2021 05:54pm
@Mark, Imports generate tax, economic activity, local jobs and a vibrant commercial centres in cities. All these are vital. A young nation can’t live like a monastery.
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Dec 04, 2021 05:55pm
Disco dance Pakistan
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Dec 04, 2021 05:55pm
Sick of these idiots following the same policies and expecting different outcomes. You have to reduce govt expenses and tax holy cows such as agriculture and we need land reforms to get rid of the feudal system. This is only going to happen if the people want to fight for it.
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Dec 04, 2021 05:58pm
Wow. what level of humiliation and desperation Pakistan has reached under Imran that his incompetent ministers congratulate the suffering people on receiving loand at 4% interest that we cannot even touch.
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Dec 04, 2021 06:14pm
Wow what an achievement. My village bank manager was so glad when I made a rs 5 lacs bank deposit with his branch.
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Dec 04, 2021 06:18pm
Now 'successfully' being able to get loans has become a matter of 'good news' for the nation. Have you guys got no shame??
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Dec 04, 2021 06:18pm
This is not USA loan... where there is always a possibility of a waiver... if services delivered. Here you habe to pay back for sure with interest... or may be provide a service to delay repayment.
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Dec 04, 2021 06:20pm
Both nations practice Sharia, so why Pakistan has to pay interest??
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Dec 04, 2021 06:22pm
Does Pakistan have the ability to pay it back with interest? NO. So return it ASAP.
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Dec 04, 2021 06:27pm
Now blow it up as you did from the previous loans.
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Dec 04, 2021 06:37pm
This is not going to help at all. A one-year deposit that can be withdrawn at two weeks' notice is worth nothing. Shaukat Tareen must reduce our imports. We can live with 4% growth.
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Dec 04, 2021 06:42pm
Congratulations!
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Dec 04, 2021 06:49pm
As a supporter of Imran Khan I am disappointed - There are many corrupt people in Pakistan who hold a fortune enough to wipe out the national debt with ease but very little money has been recovered. 2 families in particular come to mind and they all walk freely.
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Dec 04, 2021 06:55pm
Shame on this incompetent finance minister who has been bankrupt in the past. He is complete failure as other PTI ministers and government.
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Dec 04, 2021 07:00pm
Riyasat e Madina belongs to Saudi Arabia. But China and IMF own parts of it too.
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Dec 04, 2021 07:01pm
No to worry. Higher than mountains, deeper than ocean, sweeter than honey will pay back the loan. Borrow more!
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Dec 04, 2021 07:02pm
IK has gone quiet. Not more blustering statements from him or even the every Friday Kashmir solidarity days. He seems to be in hiding.
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Dec 04, 2021 07:03pm
Wear badges------Thank you Saudi Arabia, for helping us ---Losers of the century .
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Dec 04, 2021 07:09pm
@Fastrack, Yes Well done! An achievement to be proud of..Almost like buying a ferrari with no money in pocket, but pay the installments at 4% while the ferrari is kept in the dealership. Enjoy your moment of Luxury!!
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Dec 04, 2021 07:10pm
This is the proverbial 56 crore that we can see, count, keep but cannot use.
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Dec 04, 2021 07:11pm
What's so good about this news? You should be ashamed of it.
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Dec 04, 2021 07:13pm
If it’s a good news then what is the bad news .
This money will be spend on firework and maintaining the perks of “establishment” and their spoiled brats .
Poor Civilians will have PM IK’s free kitchen and billions trees to rest under their shade . No electricity, no gas, no worries - Welcome to IK’s state of Medina
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Dec 04, 2021 07:18pm
Terrific news.. we want to see more of such news until.....
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Dec 04, 2021 07:20pm
What is good about this news? Like before, how you will pay on the spot? Borrow elsewhere? How tragic they feel good by adding more debt on already burdened State beyond her capacity and means. With debt money now they can add more ministers, special advisers and consultants b/c to them bigger is better.
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Dec 04, 2021 07:25pm
4% interest has to be paid on the $3 Billion deposit — I get 0.25% on my US Dollar deposits
Also, Pakistani assets abroad have been provided as collateral for the Principal and Interest
The loan is on extremely poor terms — and Tarin is loudly thanking Saudi Arabia?
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Dec 04, 2021 08:03pm
If only he could arrange another $5 billion to be deposited maybe from China or Turkey all of Pakistan's economic woes would end.
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Dec 04, 2021 08:04pm
Someone please tell this 'finance expert' that this is loan and not stipend.
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Dec 04, 2021 08:11pm
What is good about it. Since Pakistan should return it in 72 hrs notice, that means Pakistan can’t use it, but it pays 4% for the loan.
Who wins - Saudi Arabia.
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Dec 04, 2021 08:13pm
If only $3 billion is good news then then the country’s economy must truly be near collapse. Not good.
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Dec 04, 2021 08:16pm
Praytell how will CPEC be a game-changer when Pakistan is borrowing like this. Between religious extremism and bad fiscal management, how will foreign industries locate to CPEC?
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Dec 04, 2021 08:17pm
If only IK had kept his mouth shut the interest rate wont be this high.
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Dec 04, 2021 08:29pm
This news is actually making me sick. After the lynching news and this news one thing is for sure. Ill be extracting my investment and assets from pakistan. Hopeless.
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Dec 04, 2021 09:44pm
This is why India likes IK and hopes he stays as PM of Pakistan for a long time.
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Dec 04, 2021 09:54pm
@Dr. Salaria, Aamir Ahmad, For once you are 100% right in asking those questions.
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Dec 04, 2021 10:44pm
Shame on you Tarin, Shame on you Imran, Shame on you all. Please go away. Maybe we are better off taking our chances with the corrupt but capable?
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Dec 04, 2021 10:53pm
Good news is can’t use money have to give money back with 4% interest.
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Dec 04, 2021 11:02pm
Good news for Pandora box in which the money will go.
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Dec 04, 2021 11:49pm
Loans belittle a person & a nation,actually a bad news.
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Dec 04, 2021 11:57pm
@Omar, because American Dollar is a international currency.. and almost all the international transactions are done in $..
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Dec 05, 2021 01:11am
Is it good news?
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Dec 05, 2021 01:14am
Hardly a kind gesture given the terms
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Dec 05, 2021 02:21am
If a loan with 4 percent interest is a good news then one can imagine the plight of the country. Good luck!
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Dec 05, 2021 02:24am
If they get $100 billion loan, that will also be gone in just a few years. It does not matter which government is in charge.
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Dec 05, 2021 02:28am
If the borrower is setting the interest rate,it is not usuarry. If the lender is setting it, then it is not legitimate. Given that interest rate is much higher elsewhere, the borrower was not forced to pay higher interest.
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Dec 05, 2021 03:03am
Very few nations would call receipt of a hefty loan good news.
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Dec 05, 2021 03:40am
@Mohsin Saeed Khan, we should be grateful to Saudis...Fid you not see Tareen?
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Dec 05, 2021 04:50am
Borrowing money is not bad if it is used for investment instead of consumption . There is such a thing as good debt and bad debt. Unfortunately this appears to be bad debt.
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Dec 05, 2021 05:03am
Since when getting a loan to stay afloat has become a 'good news!
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Dec 05, 2021 05:54am
"Two brotherly countries", of which one always has its hand out.
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Dec 05, 2021 06:14am
@Omar, “ Why don't they pay in Riyal or PKR”
Because Pakistan does not have USD to buy daily necessities.
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Dec 05, 2021 06:28am
Apparently getting harsh term loans is now a celebration in our country what a pathetic attitude.
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Dec 05, 2021 09:21am
Strange people, celebrating borrowing, not bothered about strengthening Pakistan economy.
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Dec 05, 2021 10:11am
What a shame, what a downfall, what a embarrassment.
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Dec 05, 2021 12:05pm
What is to celebrate, ministers will not need to pay this, its the citizens who will pay this.
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