The Saudi Fund for Development (SFD) has extended the term for the $3 billion deposit provided by the Kingdom of Saudi Arabia to the State Bank of Pakistan (SBP), the central bank said Friday.
The central bank said that 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 the Islamic Republic of Pakistan.
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
SBP said that the deposit aimed to shore up the foreign currency reserves in the central bank and help Pakistan in facing the economic repercussions of the COVID-19 pandemic. It also contributed to meeting external sector challenges and achieving sustainable economic growth for the country, the statement added.
The $3 billion-deposit agreement was signed through the Saudi Fund for Development (SFD) with the State Bank of Pakistan in November 2021, after the issuance of the royal directives that reflect the continuation of the close relationship between the two countries.
Back in September, the SFD 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.