Saudi Arabia rolls over $3 bln safe deposit to Pakistan

ISLAMABAD: Saudi Arabia has decided to extend the term of its $3 billion safe deposit in assistance to Pakistan, ARY News reported on Thursday, citing the State Bank of Pakistan.

According to the statement issued by SBP, Saudi Arabia has extended its term of $3 billion placed with Pakistan for another year.

“The Saudi Fund for Development (SFD) on behalf of the Kingdom of Saudi Arabia has extended the term for the deposit of USD 3.00 billion maturing on 05 December 2024 for another year” SBP added.

The said amount has been placed with the central bank on behalf of Pakistan.

The State Bank of Pakistan said that the extension of the term of the deposit is the continuation of the support provided by the Kingdom of Saudi Arabia to Pakistan, which will help strengthen the foreign exchange reserves of Pakistan and contribute to the country’s economic growth and development.

It is worth noting that the $3 billion deposit agreement was initially signed with SFD in 2021 and subsequently rolled over in 2022 and 2023 after the issuance of the royal directives that reflect the continuation of the close relationship between the two countries.

This move is seen as a breakthrough in bilateral relations, following the meeting of Prime Minister Shehbaz Sharif and Saudi Arabia’s Crown Prince Mohammed bin Salman on Tuesday on the sidelines of the water summit held in Riyadh.