Saudi Arabia, Pakistan sign accord for US$3 bn deposit: SBP

KARACHI: Saudi Arabia has signed an agreement with Pakistan for depositing US$3 billion in the State Bank of Pakistan (SBP) for helping country foreign exchange reserves and mitigating COVID-19 effects, ARY NEWS reported.  

The Central Bank shared the details of the agreement from its Twitter handle saying that the Kingdom was represented by Saudi Fund for Development (SFD) while the SBP represented Pakistan in the agreement that was signed by Chief Executive Officer of SFD Sultan Bin AbdulRahman Al-Marshad and the Dr. Reza Baqir in Karachi.

It shared that under the deposit agreement, the SFD shall place a deposit of US$3 billion with SBP and it will become part of SBP’s foreign exchange reserves.

2/2 The deposit agreement reflects the strong and special relationship and will augment economic ties between the two brotherly countries.

— SBP (@StateBank_Pak) November 29, 2021

“It will help support Pakistan’s foreign currency reserves and contribute towards resolving the adverse effects of the COVID19 pandemic,” the SBP release said adding that it reflects a strong and special relationship between the Kingdom and Pakistan and will further augment the economic ties between the two brotherly countries.

Previously, Prime Minister Imran Khan has thanked Crown Prince Mohammed bin Salman following the Saudi Arabian “generous gesture” of depositing $3 billion in the Pakistani central bank to support the country’s foreign exchange reserves.

PM Khan said in a tweet earlier today from his official account that he wants to thank His Royal Highness (HRH) Prince Mohammad bin Salman for supporting Pakistan with the deposit of $3 billion in the State Bank of Pakistan and for “financing refined petroleum product with $1.2 bn”.