Saudi Arabia Confirms Rollover of $3 Billion Deposit to Pakistan

The Saudi Fund for Development (SFD) has confirmed the rollover of a $3 billion deposit placed with the State Bank of Pakistan (SBP) set to mature on December 5, 2022, for one year.

Announcing the news, the central bank said that the rollover reflects “continuing strong and special relationship” between Saudi Arabia and Pakistan.

Saudi Fund for Development (SFD) has confirmed rollover of $3bn deposit maturing on 5Dec22 for one year. Deposit is placed with SBP and is part of its forex reserves. This reflects continuing strong and special relationship between KSA and Pakistan. Old PR https://t.co/YvQ9VXPq0x

— SBP (@StateBank_Pak) September 18, 2022

The central bank also mentioned that the deposit is placed with SBP and is part of its forex reserves.

Commenting on the development, economic analyst A. A. H Soomro told ProPakistani,

Amid the external financing crisis, every little helps. Our relationships had ebbed with our friends for a bit only to be revived with hectic diplomacy. United Arab Emirates (UAE) and Qatar are extending lifelines as well. However, this is temporary and Pakistan has to focus on increasing its exports.

It is pertinent to mention here that the deposit agreement between Saudi Arabia and Pakistan was signed in November, last year. Under this deposit agreement, the Saudi Fund for Development (SFD) placed a deposit of $3 billion with SBP.

The foreign exchange reserves held by the central bank had decreased by 2 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. The foreign currency reserves held by the SBP currently stand at $8.624 billion, sufficient to cover an import bill of just 1.23 months.