KARACHI: Saudi Arabia has confirmed renewing its $3 billion deposit with the State Bank of Pakistan for one year.
“Saudi Fund for Development (SFD) has confirmed rollover of $3bn deposit maturing on 5 Dec 22 for one year,” the State bank of Pakistan (SBP) said.
“The deposit is placed with the SBP and is part of its foreign exchange reserves. “This reflects continuing strong and special relationship between KSA and Pakistan,” it added.
In November 2021, Saudi Arabia, represented by the Saudi Fund for Development (SFD), and the Government of Pakistan, represented by the State Bank of Pakistan (SBP), signed an initial deposit agreement of $3 billion.
Saudi Fund for Development (SFD) has confirmed rollover of $3bn deposit maturing on 5Dec22 for one year. Deposit is placed with SBP and is part of its forex reserves. This reflects continuing strong and special relationship between KSA and Pakistan. Old PR https://t.co/YvQ9VXPq0x
— SBP (@StateBank_Pak) September 18, 2022
Last month, Saudi Arabia announced investing $1 billion in Pakistan as part of its plan to help revive the country’s economy reeling in the last few months.
Saudi King Salman bin Abdulaziz Al Saud has issued a directive to invest $1 billion in Pakistan, in confirmation of the Kingdom’s support of Pakistan economy and its people.
Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah had received a telephone call from his Bilawal Bhutto Zardari and informed him of the King’s directive.
“King Salman bin Abdulaziz ordered investing $1 billion in the brotherly [country] of Pakistan [in line with] the Kingdom’s stance in support of the country’s economy and its people,” Saudi state media reported.
It is not clear where and when the latest investment would be made. Saudi Arabia is one of the key countries that Pakistan has been seeking financial support.
Saudi Arabia extended to support multiple times to Pakistan. It pledged $4.2 billion in assistance when former prime minister Imran Khan visited the kingdom in October.
This included a deposit of $3 billion with the SBP to help shore up its reserves and a facility to finance oil derivatives trade worth $1.2 billion during the year.
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