$3bn lifeline: Saudi Arabia extends term deposit

December 02, 2022 (MLN): Saudi Arabia has extended term for $3 billion deposit to the State Bank of Pakistan (SBP) through Saudi Fund for Development (SFD). 

"In the implementation of 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 statement issued by SBP read. 

The extension of the term of the deposit is a continuation of the support provided by the government of Saudi Arabia to Pakistan, as the deposit aimed to shore up the foreign currency reserves and help Pakistan facing the economic repercussions of the COVID-19 pandemic.

The funds will also contribute to meeting external sector challenges and achieving sustainable economic growth for the country, it added. 

It is worth noting that the $3bn deposit agreement was signed through the Saudi Fund for Development (SFD) with the central bank in November 2021, after the issuance of the royal directives that reflect the continuation of the close relationship between the two countries.

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