Saudi Arabia finalising extension of $3 billion deposit to support Pakistan's economy

DAVOS – Saudi Arabia said that it is finalizing the extension of $3 billion deposits to Pakistan, which is in dire need of financial assistance to tackle the worsening economic crisis.

Saudi Minister of Finance Mohammed Al-Jadaan revealed it while talking to international media on the sidelines of the World Economic Forum 2022 in Davos.

Calling Pakistan a key ally, he said that Saudi Arabia will stand behind the South Asian country. 

His statement comes around three weeks after Pakistan Prime Minister Shehbaz Sharif visited the kingdom where matters related to trade, investment and bilateral cooperation were discussed.

A joint statement issued by the PM’s Office had said, “Saudi Arabia affirmed its continued support to Pakistan and its economy including the discussion of augmenting the $3 billion deposit with the central bank through term extension or otherwise”.

In 2021, the kingdom had deposited $3 billion in Pakistan's foreign reserves for one year at 4% interest under a support package.

The incumbent government is also making efforts for the revival of an International Monetary Fund programme to tackle the economic crisis that is coincided with political instability in the country. 

Saudi Arabia pumps $3 billion into SBP reserves to support Pakistan economy