The Kingdom of Saudi Arabia has extended the $3 billion deposit placed with the State Bank of Pakistan (SBP). The deposit, which was set to mature on December 5, 2024, will now remain for another year. The extension comes through the Saudi Fund for Development (SFD) and reflects Saudi Arabia’s ongoing support for Pakistan’s economy.
Boost to Pakistan’s Foreign Reserves
The extended deposit aims to strengthen Pakistan’s foreign exchange reserves. It will also contribute to the country’s economic growth and stability. This move is part of Saudi Arabia’s consistent assistance to Pakistan, especially during its financial challenges.
Agreement Signed in 2021
The $3 billion deposit agreement was first signed in 2021. It has since been extended annually. This includes rollovers in 2022, 2023, and now 2024. These extensions showcase the strong bilateral ties between the two countries.
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Strengthening Bilateral Relations
The decision reflects the royal directives from Saudi Arabia’s leadership. These directives underline the close relationship and mutual trust between Saudi Arabia and Pakistan. Both nations continue to cooperate on economic and development initiatives.
Pakistan’s Economic Challenges
Pakistan has been struggling with economic challenges, including low foreign exchange reserves. The extension of the $3 billion deposit provides much-needed relief. It also supports Pakistan’s efforts to stabilize its economy and meet financial obligations.
Saudi Arabia’s Commitment to Pakistan
This extension is another example of Saudi Arabia’s commitment to supporting Pakistan. Over the years, the Kingdom has provided financial assistance, energy supplies, and investment opportunities to help Pakistan overcome economic hurdles.
Key Role of the SFD
The Saudi Fund for Development has played a crucial role in facilitating this financial support. By managing the deposit, the SFD ensures that Saudi Arabia’s assistance reaches Pakistan in an effective and timely manner.
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