Politics


Saudi Arabia: Riyadh grants $380 mln loan to Pakistan




Riyadh, 11 Nov. (AKI) - Saudi Arabia has granted Pakistan a 380 million dollar loan in the biggest single donation since donors pledged 5.7 billion dollars worth of aid to the country in April. A senior Saudi official said the loan was part of the 700 million dollars the country had pledged to give Pakistan.

Several countries that met in Tokyo in April pledged a total of 5.7 billion dollars in aid to Pakistan but some donors have sought more details on how the money will be spent and have raised doubts about the stability of the government.

The Pakistani central bank will get 200 million dollars from Saudi Arabia to cover the country's budget deficit, a 100 million dollar credit line to cover Pakistani fertilizer imports and 80 million dollars to support the Neelum-Jhelum hydropower project, the official said.

"This (380 million dollar) loan was granted by the Saudi Development Fund which supports development in foreign countries by giving grants or soft loans," the official said.

"Saudi Arabia is so far Pakistan's biggest donor under the Tokyo agreement ... We will deliver the remaining 320 million dollars soon. We are working with Pakistani authorities to define areas of need," he added.

Saudi Arabia is Pakistan's top Arab ally. Some 1.7 million Pakistani expatriates who live and work in Saudi Arabia sent home 1.8 billion dollars in remittances in 2008.

The International Monetary Fund has urged Pakistan to work harder on reform and demanded that donors follow through on the aid promised for the Asian country.




 


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