Islamabad (HRNW) Saudi Arabia on Friday extended the term for a $3 billion deposit with the State Bank of Pakistan (SBP) to support the Pakistani economy.
This was announced by the State Bank of Pakistan on Friday in a statement.
Deposited following an agreement in November 2021 through the Saudi Fund for Development (SFD), the term for the deposit was extended following instructions from Saudi King Salman bin Abdulaziz Al Saud.
It is pertinent to note that the $3 billion deposit agreement was signed between the SFD and the SBP in November 2021.
The deposit was aimed at providing relief for the dwindling foreign currency reserves in the central bank.
“The extension of the term of the deposit is a continuation of the support provided by the government of the Kingdom of Saudi Arabia to Pakistan,” the State Bank said, adding that the deposit is aimed at helping “Pakistan in facing the economic repercussions of the COVID-19 pandemic.”
Furthermore, the deposit will help Pakistan meet external sector challenges and achieve sustainable economic growth for the country.
The deposit and direction to extend its term “reflected the close relationship between the two countries,” the central bank said.