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Saudi key source of cheap loans for Pak
Orissa POST
|September 22, 2025
Saudi loans are about one-third cheaper than Chinese cash deposits and less than half the cost of foreign commercial borrowing
Saudi Arabia remains the major source of cheap foreign loans for Pakistan, charging an annual interest rate of only 4 per cent, a media report said Sunday.
Riyadh charged a 4 per cent interest rate on two separate cash deposit facilities obtained by Islamabad in recent years, according to official records. The loan, originally contracted for one year, has yet to be repaid, The Express Tribune reported.
The kingdom has been rolling it over annually without imposing additional costs.
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