In a significant development, the Kingdom of Saudi Arabia on Wednesday officially announced the extension of its $3 billion deposit facility with the State Bank of Pakistan (SBP) for an additional year.
In a statement, the central bank stated that the Saudi Fund for Development (SFD), acting on behalf of the Kingdom, confirmed the extension of the term for the deposit, originally set to mature on December 05, 2023.
1/2 On behalf of the Kingdom of Saudi Arabia, the Saudi Fund for Development (SFD) has extended the term of USD3bn deposit maturing on 05Dec23 for another year. This deposit is placed with SBP on behalf of the Islamic Republic of Pakistan.
— SBP (@StateBank_Pak) November 29, 2023
The initial $3bln deposit agreement was inked in 2021 through the SFD with the SBP and was subsequently renewed in 2022, following royal directives reflecting the enduring and close relationship between the two brotherly nations.
Strategic economic impact
The funds, strategically placed with the SBP, play a pivotal role in helping Pakistan maintain its foreign exchange reserves, contributing significantly to the stability of the country's economy.
The extension of the deposit term is anticipated to further fortify Pakistan's foreign currency reserves, fostering economic growth and financial stability.
Critical assistance for Pakistan's economic landscape
The extended term of the deposit facility underscores Saudi Arabia's commitment to stand by Pakistan during challenging economic times.
The financial assistance provided by the Kingdom has proven instrumental in bolstering Pakistan's economic resilience, allowing for strategic planning and development initiatives.
