Cash-strapped Pakistan has received a $4.2-billion lifeline from Saudi Arabia, in a move that is expected to help it on different fronts.
The Saudi Fund for Development or SFD has announced that, for starters, it will deposit $3 billion into the State Bank of Pakistan.
The SFD, a government agency that usually finances social and infrastructure projects in developing countries, said this follows a royal decree in this regard.
According to a report in the official Saudi Press Agency, the deposit is expected to help the Pakistani government support its foreign currency reserves.
It is also expected to help Pakistan face the impacts of the coronavirus pandemic.
The country has already seen 1.27 million cases of Covid-19 infection, of which 28,392 have resulted in deaths.
The SFD added that the royal directive would also lead to the financing of the oil-derivatives trade with Pakistan with a total amount of $1.2 billion throughout the year.
