The SBP says the extension of the deposit period was “a continuation of the support that Riyadh has provided” to Pakistan.
The State Bank of Pakistan (SBP) announced Friday that Saudi Arabia had extended the deadline for $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) has extended the deadline for a $3 billion deposit made by the Kingdom of Saudi Arabia to the State Bank of Pakistan,” the central bank announced on its Twitter account.
The SBP further mentioned that the deposit period was “in continuation of the support extended by Riyadh” to Pakistan to shore up foreign exchange reserves and help the country “counter the economic impact of the COVID-19 pandemic”.
The deposit also contributed to Pakistan’s goal of meeting “external sector challenges and achieving sustainable economic growth.”
In September of this year, the Saudi Fund for Development (SFD) confirmed that the deposit is rolling for a year. It was likely to settle on December 5. The deposit agreement was concluded between Pakistan and the Kingdom in November 2021 to bolster Pakistan’s foreign exchange reserves and help address the adverse effects of the COVID-19 pandemic.
