Saudi Arabia has extended its term for a $3 billion deposit in the central bank through the Saudi Fund for Development (SFD) in support of the Pakistan economy, the State Bank of Pakistan (SBP) said on Friday.
The decision was an implementation of King Salman bin Abdulaziz Al Saud’s royal directives, Pakistan media reported quoting a press release.
In November last year, the SBP had signed an agreement with the SFD to receive $3bn, which would be placed in the central bank’s account with an aim to improve its foreign exchange reserves.
The SBP’s statement added that the extension in the term “contributed to meet external sector challenges and achieve sustainable economic growth for the country.”
“The extension of the term of the deposit is a continuation of the support provided by the Saudi Arabian government to the Islamic Republic of Pakistan,” the statement concluded. “The deposit aimed to shore up the foreign currency reserves in the SBP and help Pakistan in facing the economic repercussions of the Covid-19 pandemic.”
Meanwhile, the Prime Minister of Pakistan Shehbaz Sharif has welcomed the extension, saying that it would help improve Pakistan’s economic situation.
“Pakistan’s economic self-reliance is the first national agenda for which political stability and a balanced economy are the need of the hour,” he said in a statement issued on Friday.
The premier thanked the Saudi government and Prince Abdulaziz Bin Salman. “We deeply appreciate the love Prince Salman has for Pakistan,” the Pakistan PM said in the statement.