ISLAMABAD – Saudi Arabia has rolled over a $3 billion deposit in Pakistan, following a formal agreement between the State Bank of Pakistan (SBP) and the Saudi Fund for Development (SFD).
The agreement was signed by the Chief Executive of SFD and SBP Governor Jameel Ahmed, with Federal Finance Minister Muhammad Aurangzeb also in attendance in Washington DC.
Speaking at the signing ceremony, Minister Aurangzeb described the agreement as a reflection of strong economic ties between Pakistan and Saudi Arabia, adding that it would further strengthen Pakistan’s external financial stability.
The agreement comes shortly after Pakistan received $2 billion from Saudi Arabia, a move confirmed by the SBP that helped avert a sudden drop in the country’s foreign exchange reserves.
Pakistan is scheduled to make a $3.5 billion payment to the UAE this month, which had declined to rollover its dollar deposits, and has also recently paid $1.2 billion toward Eurobond maturities.
