KARACHI – Saudi Arabia has deposited $3 billion in Pakistan’s foreign reserves for one year at 4% interest under a support package, Adviser to the Prime Minister on Finance Shaukat Tarin confirmed Saturday.
The grant is a major relief for the South Asian country which is suffering from economic challenges with sliding foreign reserves, a widening current account deficit, a depreciating currency, and high inflation.
“Good news, US$3 billion Saudi deposit received by SBP,” PM’s aide said on Twitter, thanking Saudi Crown Prince Mohammed Bin Salman and the kingdom for the kind gesture.
https://twitter.com/shaukat_tarin/status/1467059562104635394
Earlier, the State Bank of Pakistan signed an agreement with the Saudi Fund for Development (SFD) to receive $3 billion to shore up its depleting foreign exchange reserves.
A statement issued by the central bank on Monday cited “Under this deposit agreement, SFD shall place a deposit of USD 3 billion with SBP. The deposit amount under the agreement shall become part of SBP’s Foreign Exchange Reserves.”
The Saudi support package also includes a $1.2 billion oil loan facility. It was agreed during Prime Minister Imran Khan’s visit to the Kingdom of Saudi Arabia last month.
‘Special relationship’ – Saudi Arabia, Pakistan sign 3 billion deposit agreement
The development come a week after the International Monetary Fund (IMF) agreed with Islamabad on measures needed to revive a stalled $6 billion funding programme.
