State Bank of Pakistan: Saudi Arabia Extends Term for $3bn Deposit for One Year
Saudi Arabia extends term for$ 3bn deposit for one time Saudi Arabia has chosen to extend the term for a$ 3 billion deposit set to develop on December 5, 2023, for an fresh time, as bared by the State Bank of Pakistan( SBP) in a statement released on Wednesday. The said quantum has been placed with the State Bank of Pakistan( SBP) on behalf of the Islamic Republic of Pakistan.
As stated by the SBP, "The term for the deposit of USD 3 billion maturing on December 5, 2023 has been extended for an additional year by the Saudi Fund for Development (SFD) on behalf of the Kingdom of Saudi Arabia."
Saudi Arabia extends term for $3bn deposit for one year:This extension reflects the ongoing support from the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan.
The move aims to bolster Pakistan’s foreign currency reserves and contribute to the nation’s economic growth, as mentioned in the SBP statement.
The $3 billion deposit agreement was originally established through the SFD with the SBP in 2021 and subsequently rolled over in 2022 following royal directives that underscore the enduring close relationship between the two brotherly countries.
Saudi Arabia extends term for $3bn deposit for one year:Pakistan is currently experiencing a depletion in foreign exchange reserves due to reduced inflows from overseas investors.
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Notably, the country avoided default last year by securing a short-term bailout package from the International Monetary Fund (IMF) under stringent conditions,1 leading to increased inflation and prices of gas, energy, and petroleum products.
As of the week ending November 17, the SBP reported that Pakistan’s foreign exchange reserves held by the central bank decreased to $7.180 billion, while commercial banks’ reserves dropped to $5.122 billion, resulting in an overall reserves figure of $12.302 billion for the country.
The SBP attributed this decline in reserves to debt repayment.
