ISLAMABAD (Dunya News) – Saudi Arabia has extended the term for the deposit of $3 billion maturing on December 5, 2023, for another one year, the State Bank of Pakistan (SBP) announced in a statement on Wednesday.
“The Saudi Fund for Development (SFD) on behalf of the Kingdom of Saudi Arabia has extended the term for the deposit of USD 3 billion maturing on 05 December 2023 for another one year. The said amount has been placed with State Bank of Pakistan (SBP) on behalf of Islamic Republic of Pakistan,” the SBP stated.
The extension of the term of the deposit is a continuation of the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan, which will help to maintain the foreign currency reserves of Pakistan and contribute to the economic growth of the country, the SBP statement added.
It is worth noting that the $3 billion deposit agreement was initially signed through the SFD with the SBP in the year 2021 and rolled over subsequently in 2022, after the issuance of the royal directives that reflect the continuation of the close relationship between the two brotherly countries, the statement detailed.
Pakistan’s foreign exchange reserves are fast depleting amid less inflows from overseas investors.
The country averted default last year after securing a short-term bailout package from the International Monetary Fund (IMF) with strict conditions, raising the inflation as well as the prices of gas, energy and POL products.
In the week ending November 17, Pakistan’s foreign exchange reserves held by the central bank dipped to $7.180 billion while commercial banks’ reserves fell to $5.122 billion, according to the SBP, bringing the country’s overall reserves to $12.302 billion. The SBP attributed this decrease in the reserves to debt repayment.