Saudi Arabia has deposited $2 billion in State Bank of Pakistan, Finance Minister Ishaq Dar announced on Tuesday.

The money is part of the $8 billion dollar financing Pakistan is seeking from friendly countries and financial institutions to meet the conditions set by the International Monetary Fund for the $3 billion stand-by arrangement. The IMF had asked Pakistan to seek assurances of at least $6 billion, but Pakistan secured pledges worth $8 billion.

Addressing a press conference in Islamabad on Tuesday, Dar said that Saudi Arabia had deposited the money, fulfilling it commitment.

Dar added that the money will immediately start reflecting as part of Pakistan’s foreign exchange reserves which will now move from $9 billion to $11 billion.

He said that the development had come about after the efforts of Prime Minister Shehbaz Sharif and Chief of Army Staff General Asim Munir.

He also thanked Saudi King Salman bin Abdulaziz and Crown Prince Muhammad bin Salman and said that the kingdom had always come to Pakistan’s aid as a friend.

Dar added that with reserves replenished and more dollars expected to arrive from IMF and other neighboring countries, the country’s economic outlook was likely to improve.

Pakistan, IMF reach agreement on external financing targets

Earlier in the day, Pakistan reached an agreement with the International Monetary Fund on external financing targets in the wake of a staff-level agreement being signed.

Dar and IMF officials reached an agreement on a financing plan worth a total of $8.5 billion.

Apart from the $3 billion from the IMF, Pakistan expects to receive $0.5 billion each from the Asian Development Bank and World Bank.

Pakistan will also receive $3.5 billion from China, $2 billion from Saudi Arabia and $1 billion from UAE.

At least $350 million pledged during the Geneva Conference would also come to Pakistan, according to the finance ministry.

This story is being updated.