Saudi Arabia major source of cheap foreign loans for Pakistan: reportSaudi Arabia remains Pakistan's primary source of cheap foreign loans, offering 4% interest rates—significantly lower than Chinese or commercial borrowing. Islamabad: 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 on Sunday. The Saudi loans are about one-third cheaper than Chinese cash deposits and less than half the cost of foreign commercial borrowing, the report added. Another US$ 3 billion Saudi loan, obtained to plug the external financing gap under the IMF programme, will mature in June next year. Pakistan is also availing Chinese commercial loans, which are now converted into Chinese currency from US$.