Through the Saudi Fund for Development (SFD), the Kingdom of Saudi Arabia has announced the extension of a $3 billion deposit with the State Bank of Pakistan (SBP) for an additional year, reported 24NewsHD TV channel on Thursday.
The deposit, initially scheduled to mature on December 5, 2023, will now continue its term, showcasing the ongoing support between the two brotherly countries.
The extension of this substantial deposit underscores Saudi Arabia’s commitment to assisting Pakistan in maintaining its foreign currency reserves and fostering economic growth. The funds, held with the State Bank, play a crucial role in stabilizing Pakistan’s financial landscape and ensuring the country’s resilience against economic uncertainties.
The deposit agreement, first inked in 2021, marked a significant milestone in the bilateral relationship between Saudi Arabia and Pakistan. The commitment of $3 billion was renewed in 2022, following royal directives, showcasing the enduring and close ties between the two brotherly nations. This latest extension further solidifies the economic partnership, providing Pakistan with the financial stability necessary for sustainable development.
The support from Saudi Arabia comes at a critical time for Pakistan as it continues to navigate economic challenges and strives for comprehensive growth. The extended deposit will not only bolster the foreign exchange reserves but also facilitate the implementation of key economic initiatives, ultimately contributing to the nation’s progress.
Announcing the Saudi extension, the State Bank of Pakistan in a post on X platform said “On behalf of the Kingdom of Saudi Arabia, the Saudi Fund for Development (SFD) has extended the term of $3 billion deposit maturing on December 5, 2023 for another year. This deposit is placed with SBP on behalf of the Islamic Republic of Pakistan.”
The State Bank further said “The continuation of this support by the Kingdom of Saudi Arabia will help Pakistan maintain forex reserves and boost its economic growth.”