Friday’s announcement by the State Bank of Pakistan (SBP) was that Saudi Arabia extended the maturity date of the $3 billion deposit with the central bank.
“Following the instructions of King Salman bin Abdulaziz Al Saud, the Custodian of the Two Holy Mosques — may Allah protect him; According to a statement released by the central bank, “the Saudi Fund for Development (SFD) extended the term for the deposit provided by the Kingdom of Saudi Arabia to the State Bank of Pakistan in the amount of 3 billion dollars.”
1/2 Implementing directives of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud – may Allah protect him; the Saudi Fund for Development @SaudiFund_Dev has extended the term for deposit, $3bn, provided by Kingdom of Saudi Arabia to State Bank of Pakistan.
— SBP (@StateBank_Pak) December 2, 2022
The SBP stated that the extension of the deposit’s term was a “continuation of the support provided” by Riyadh to Pakistan to help Islamabad “face the economic repercussions of the COVID-19 pandemic” and strengthen Pakistan’s foreign currency reserves.
Pakistan’s goal of addressing “external sector challenges and achieving sustainable economic growth” has also been helped by the deposit.
The Saudi Fund for Development (SFD) confirmed the deposit’s one-year rollover in September of this year. On December 5, its maturity date was anticipated.
Pakistan and the Kingdom entered into the deposit agreement in November 2021 with the intention of supporting Pakistan’s foreign currency reserves and contributing to the resolution of the COVID-19 pandemic’s negative effects.
