ISLAMABAD: Pakistan has returned $1 billion to Saudi Arabia as the second installment of a $3 billion soft loan.

According to sources, the first installment of $1 billion was returned to Saudi Arabia last month and this is the second installment and third and final installment would be paid next month.

Pakistan returned the installment of the Saudi loan after getting a commercial loan from China, sources said. After repayment of the second installment, the country’s foreign exchange reserves stand at $13.3 billion.

In October 2018, Saudi Arabia had agreed to provide US$ 6.2 billion worth of financial package to Pakistan for three years. This included US$ three billion in cash assistance to address Pakistan’s balance of payment issue and US dollar 3.2 billion worth of oil on deferred payments.

Pakistan has already paid back US$ one billion to Saudi Arabia in May this year out of the three billion dollars financing.