Saudi Arabia extends term of $3bn deposit

The State Bank of Pakistan (SBP) Friday announced that Saudi Arabia has extended the term for the $3 billion deposited with the central bank.

“Implementing the directives of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud — may Allah protect him; the Saudi Fund for Development (SFD) extended the term for the deposit provided by the Kingdom of Saudi Arabia in the amount of $3 billion to the State Bank of Pakistan," the central bank announced on its Twitter handle.

The SBP further mentioned that the deposit term's extension was a “continuation of the support provided” by Riyadh to Pakistan to support foreign currency reserves and help the country in “facing the economic repercussions of the COVID-19 pandemic”.

The deposit has also contributed to Pakistan’s aim of meeting “external sector challenges and achieving sustainable economic growth”.

In September of this year, the Saudi Fund for Development (SFD) confirmed the rollover of the deposit for a year. It was expected to mature on December 5.

The deposit agreement was made between Pakistan and the Kingdom in November 2021, in a bid to support Pakistan’s foreign currency reserves and contribute toward resolving the adverse effects of the COVID-19 pandemic.