Saudi Arabia Confirms Rollover of $3 Billion Deposit to Pakistan

The Saudi Fund for Development has confirmed the rollover of a $3 billion deposit placed with the State Bank of Pakistan. The deposit is set to mature on December 5, 2022 and will be rolled over for one year. It reflects “continuing strong and special relationship” between Saudi Arabia and Pakistan.

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. However, this is temporary and Pakistan has to focus on increasing its exports.

The foreign exchange reserves held by the State Bank of Pakistan decreased by 2 percent on a weekly basis. The SBP’s foreign currency reserves currently stand at $8.624 billion, sufficient to cover an import bill of just 1.23 months’ worth of goods and services.