Saudi fund extends term for $3bn deposit to Pakistan for another year

The State Bank of Pakistan (SBP) on Wednesday announced that Saudi Arabia had extended the term for a deposit of $3 billion to Pakistan for one more year. “The Saudi Fund for Development (SFD), on behalf of the Kingdom of Saudi Arabia, has extended the term for the deposit of $3bn, maturing on December 5, for another year,” the bank said in a statement posted on social media platform X. The SBP said the extension was a continuation of the kingdom’s support to Pakistan, adding that it would help maintain foreign exchange reserves and contribute to the country’s economic growth. The central bank said the deposit agreement was initially signed with the SFD in November 2021, adding that the amount was placed in its reserves on the state’s behalf. The amount was subsequently rolled over in 2022, after “the issuance of the royal directives that reflect the continuation of the close relationship between the two brotherly countries.” Saudi Crown Prince Mohammed Bin Salman had directed the SDF in January to study increasing the deposit amount in the SBP to $5bn. Saudi Arabia later deposited an additional $2bn with the SBP in July.