Islamabad: The Kingdom of Saudi Arabia (KSA) has extended the term for a $3 billion deposit in the State Bank of Pakistan (SBP) through the Saudi Fund for Development (SFD) “in support of the Pakistani economy”, the SBP revealed on Friday.
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
The development has come in support of the reeling economy of Pakistan.
“The Saudi Fund for Development (SFD) extended the term for the deposit provided by the Kingdom of Saudi Arabia in the amount of 3 billion dollars to the State Bank of Pakistan,” a statement from the central bank read.
The statement further read that the extension of the term of the deposit was a continuation of the support provided by the government of the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan.
It said that the development followed the directives of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud.
“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.”
It is important to note that the $3 billion deposit agreement was signed through the Saudi Fund for Development (SFD) with the State Bank of Pakistan in November of the last year 2021, after the issuance of the royal directives that reflect the continuation of the close relationship between the two countries.