Saudi Arabia extends term of $3bn deposit: SBP

ISLAMABAD: Saudi Arabia has extended the term for a $3 billion deposit it had made to Pakistan’s central bank, announced SBP on Friday.

“The SFD extended the term for the deposit provided by the Kingdom of Saudi Arabia in the amount of $3 billion to the SBP,” SBP said in a statement shared on its official Twitter handle.

The central bank said that the extension of the term of the deposit “is a continuation of the support provided by the government of Saudi Arabia to the Government of Pakistan.”

“The deposit (is) aimed to shore up the foreign currency reserves in the Bank and help Pakistan in facing the economic repercussions of the COVID-19 pandemic; it, furthermore, contributed to meet external sector challenges and achieve sustainable economic growth for the country,” said SBP.

2/2 Extension of term of the deposit is a continuation of support provided by the government of Kingdom of Saudi Arabia to Islamic Republic of Pakistan. Agreement was signed through SFD with SBP in Nov21. See PR: https://t.co/cjldEhyfX9

— SBP (@StateBank_Pak) December 2, 2022

It is pertinent to mention here that the deposit agreement between Saudi Arabia and Pakistan was signed in November, last year. Under this deposit agreement, the Saudi Fund for Development (SFD) placed a deposit of $3 billion with SBP.

Earlier, Saudi Arabia announced to invest $1 billion in Pakistan to support the country’s economy.

Saudi state TV added that Saudi King Salman bin Abdulaziz Al Saud had issued directives to invest $1 billion in Pakistan.