The Saudis will increase their SBP deposits by $2 billion

Islamabad:

Riyadh and Islamabad have reached an agreement to increase Saudi deposits at the State Bank of Pakistan (SBP) by $2 billion – from $3 billion to $5 billion.

Saudi Arabia Holding Company CEO Mohammad AlQahtani in a social media post shared that after Prime Minister Shehbaz Sharif’s visit to Saudi Arabia and his meeting with Crown Prince Mohammed Bin Salman, the two countries agreed to speed up the implementation of 5 billion dollars”. mass” design.

The agreement was signed between Prime Minister Shehbaz and the Saudi Crown Prince in Makkah on Monday during the Prime Minister’s three-day visit to seek financial support from the Kingdom.

The two leaders discussed ways to strengthen bilateral ties with particular emphasis on the Kingdom’s supportive role in Pakistan’s economy and mutual desire to strengthen trade and investment ties, according to a joint communique issued simultaneously by Islamabad and Riyadh at the end of the meeting.

“Both parties reaffirmed their commitment to expedite the first wave of the $5 billion investment package previously discussed,” it added.

AlQahtani explained that the deals included injecting investment into a new oil refinery and copper mines.

The CEO of Saudi Arabia Holding Company clarified that these steps were part of a broader agreement reached earlier where Riyadh was in talks to invest $21 billion in Islamabad.

He added that they included setting up an oil refinery at a cost of $14 billion and a copper mine at a cost of $7 billion.

Last year, Saudi Arabia pledged to invest $25 billion in Pakistan over the next five years under the Special Investment Facilitation Council (SIFC), which sought investments in the energy, information technology, minerals, defense and agriculture. from the Gulf countries.

The Saudis are expected to invest $5 billion in the mineral sector, particularly the Reko Diq Copper-Gold Project located in the Chaghi district of Pakistan’s Balochistan province.

AlQahtani further wrote that these investments were seen as a positive step towards strengthening economic relations between Islamabad and Riyadh, to support Pakistan’s economy as well as create new job opportunities.

He added that Prime Minister Shehbaz had described this agreement as “historic” and a “landmark” in relations between the two countries.

“The investments come at a time when Pakistan is facing a severe economic crisis, with high inflation rates and a shortage of foreign currency. Pakistan hopes that these investments will help improve its economy and create new job opportunities. Pakistan has a strong and reliable ally in Saudi Arabia, which has long provided extensive financial and political support,” he wrote.