ISLAMABAD: The federal cabinet has reportedly approved a summary with respect to US three billion dollars Saudi Arabia safe deposits in the State Bank of Pakistan (SBP) to support the foreign exchange reserves.

However, when contacted, Spokesman of the Finance Ministry Muzzammil Aslam said that the Minister for Information and Broadcasting Fawad Chaudhary has made a statement couple of days ago that all the legal modalities with respect to transfer of US three billion dollars have been completed.

However, Aslam neither affirmed nor denied approval of the summary through circulation but stated that the interest payment of the annual profit rate would be around four percent as opposed to 5.5 percent of Eurobonds and seven to eight percent for commercial borrowing.

SBP's foreign exchange reserves increase $53 million, now stand at $17.2 billion

On October 26, the Information minister in his tweet said that “the Saudi Arabia announcement to support Pakistan with US three billion dollars as deposit in Pakistan central bank and also financing refined petroleum products with US 1.2 billion dollars during the year”.

Additionally, spokesman further stated that the government would also issue US one billion Sukuk bonds in the international capital market in December 2021.

Earlier, the Finance Ministry’s spokesman also tweeted, “there is fake news circulating related to ‘Adviser to Finance’ meeting with Chinese Economist comments in joint session. This is absolutely rubbish social media message no such interaction took place. As we all know the ‘fake news’ is the biggest challenge to this government.”

Copyright Business Recorder, 2021