Saudi finance minister says Riyadh finalising extension of $3b deposit to Islamabad

Saudi Finance Minister Mohammed al-Jadaan said on Tuesday that the kingdom is “finalising” the extension of the $3 billion deposit it gave to Pakistan.

"We are currently finalising extending the $3 billion deposit to Pakistan," al-Jadaan said told Reuters on the sidelines of the World Economic Forum in Davos.

However, according to the wire agency the Saudi finance minister did not share any details on the extension being granted to Pakistan.

The Saudi minister labelled Pakistan as an important ally and told the agency that Riyadh would stand behind Islamabad.

The oil-rich state deposited $3 billion in the State Bank of Pakistan (SBP) last year to help Pakistan with its foreign reserves.

The South Asian nation urgently seeks external financial help as depleting reserves can only cover two months of import bills. The rupee is also sharply weakening against the dollar — and it has been breaking records for over a week.

The revival of the International Monetary Fund (IMF) programme also remains uncertain, due to which the country's markets continue to jitter.