Islamabad, November 30, 2023 – The Kingdom of Saudi Arabia, through the Saudi Fund for Development (SFD), has announced the extension of a USD 3 billion deposit with the State Bank of Pakistan (SBP) for an additional year.
The deposit, initially scheduled to mature on December 5, 2023, will now continue its term, showcasing the ongoing support between the two nations.
The extension of this substantial deposit underscores Saudi Arabia’s commitment to assisting the Islamic Republic of Pakistan in maintaining its foreign currency reserves and fostering economic growth. The funds, held with the SBP, play a crucial role in stabilizing Pakistan’s financial landscape and ensuring the country’s resilience against economic uncertainties.
The deposit agreement, first inked in 2021, marked a significant milestone in the bilateral relationship between Saudi Arabia and Pakistan. The commitment of USD 3 billion was renewed in 2022, following royal directives, showcasing the enduring and close ties between the two brotherly nations. This latest extension further solidifies the economic partnership, providing Pakistan with the financial stability necessary for sustainable development.
The support from Saudi Arabia comes at a critical time for Pakistan as it continues to navigate economic challenges and strives for comprehensive growth. The extended deposit will not only bolster the foreign exchange reserves but also facilitate the implementation of key economic initiatives, ultimately contributing to the nation’s progress.
In response to the announcement, officials from the State Bank of Pakistan expressed gratitude for the continued support from Saudi Arabia. They emphasized the positive impact of the deposit on Pakistan’s economic resilience and underscored the importance of such collaborations in fostering regional stability.
The Kingdom of Saudi Arabia has been a longstanding ally of Pakistan, and the extension of the deposit reflects a shared commitment to mutual prosperity. The financial cooperation between the two countries goes beyond mere transactions, embodying a spirit of brotherhood and solidarity.
Experts suggest that the rollover of the deposit is a testament to the confidence that Saudi Arabia places in Pakistan’s economic policies and reforms. The financial infusion provides Pakistan with a safety net, allowing it to navigate global economic uncertainties and external shocks with greater confidence.
As both countries continue to explore avenues for enhanced cooperation, the extension of the deposit is seen as a positive step towards reinforcing economic ties. The close collaboration between Saudi Arabia and Pakistan is expected to open up new opportunities for trade, investment, and joint ventures, paving the way for shared prosperity.
In conclusion, the extension of the USD 3 billion deposit by Saudi Arabia reaffirms the strong and enduring bond between the two nations. Beyond the financial implications, it symbolizes a commitment to solidarity, economic growth, and shared prosperity. The continued support from Saudi Arabia is poised to play a pivotal role in Pakistan’s journey towards sustained economic development.
