The State Bank of Pakistan (SBP) announced on Friday that Saudi Arabia has extended the term for the $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) extended the term for the deposit provided by the Kingdom of Saudi Arabia in the amount of 3 billion dollars to the State Bank of Pakistan,” said the central bank in a statement.
The SBP said that the extension of the term of the deposit was a “continuation of the support provided” by Riyadh to Pakistan to shore up Pakistan’s foreign currency reserves and help Islamabad in “facing the economic repercussions of the COVID-19 pandemic”.
The deposit has also contributed to Pakistan’s aim of meeting “external sector challenges and achieve sustainable economic growth”.
In September of this year, the Saudi Fund for Development (SFD) had confirmed the rollover of the deposit for a year. It was expected to mature on December 5.
The deposit agreement was made between Pakistan and the Kingdom in November 2021, in a bid to support Pakistan’s foreign currency reserves and contribute toward resolving the adverse effects of the COVID-19 pandemic.