The Kingdom of Saudi Arabia (KSA) has extended the term for a $3 billion deposit in the State Bank of Pakistan (SBP) through the Saudi Fund for Development (SFD) in support of the Pakistani economy, the central bank said on Friday.
“The SFD extended the term for the deposit provided by the Kingdom of Saudi Arabia in the amount of $3 billion to the SBP,” read an SBP statement.
The extension of the $3 billion deposit is considered crucial for the cash-starved South Asian economy, which has seen its foreign exchange reserves depleted in recent months.
The central bank on Friday said that the extension of the term of the deposit is a continuation of the support provided by the government of Saudi Arabia to the Government of Pakistan.
“The deposit (is) aimed to shore up the foreign currency reserves in the Bank and help Pakistan in facing the economic repercussions of the COVID-19 pandemic; it, furthermore, contributed to meet external sector challenges and achieve sustainable economic growth for the country,” said SBP.
The $3 billion-deposit agreement was signed through the SFD with the central bank of Pakistan in November of last year 2021, after the issuance of the royal directives that reflect the continuation of the close relationship between the two countries.