Saudi Arabia extends term of $3 billion deposit in State Bank of Pakistan

Saudi Arabia extends term of $3 billion deposit in State Bank of Pakistan

Karachi (Web Desk): Saudi Arabia has extended the term of $3 billion deposit in the State Bank of Pakistan (SBP) through the Saudi Fund for Development (SFD) to support Pakistan's economy.

According to a statement by the SBP, the extension of the deposit period is a continuation of the support provided by the Government of Saudi Arabia to Pakistan.

"Implementing the directives of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud — may Allah protect him; 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," the central bank stated.

The purpose of the deposit is to augment the foreign currency reserves in the bank and help Pakistan deal the economic impact caused by COVID-19.

Following the royal directives and reflecting the continuation of close relations between the two countries, the Saudi Fund for Development signed a three billion dollars deposit agreement with the SBP in November last year.

In September, the SFD had confirmed the rollover of a $3 billion deposit for one more year. The deposit was set to mature on December 5.

In the last week of October 2021, Saudi Arabia had agreed to revive its financial support to Pakistan, including about $3bn in safe deposits and $1.2bn worth of oil supplies on deferred payments.