Saudi Arabia places $3bn with Pakistan’s central bank State Bank of Pakistan

Saudi Arabia places $3bn with Pakistan’s central bank

ISLAMABAD: Saudi Arabia has announced an additional support of $3 billion to Pakistan for building its foreign exchange reserves.

The additional financial support is besides a $1.2 billion dollars deferred oil facility to Pakistan to help its balance of payment issues, an official statement said.

According to the Saudi Press Agency – SPA, the Saudi Fund for Development in a “generous gesture” announced a deposit of $3 billion dollars with the State Bank of Pakistan (SBP) to help the government support its foreign currency reserves and counter the impact of the Corona pandemic.

The SPA reported that the deposit was in addition, to an oil deferred payment facility of $1.2 billion dollars for petroleum products, during the year.

The SPA said that the gesture reflected the Saudi Kingdom’s continued position in supporting the economy of Pakistan.

The announcement would help ease pressure on Pakistan’s foreign exchange reserves, due to the recent sharp hike in global commodity prices.

In a late-night development Information Minister Ch. Fawad Hussain shared the major development on his Twitter handle, a day after the return of Prime Minister Imran Khan from a three-day visit to the Kingdom to attend the Middle East Green Initiative of the Saudi Crown Prince.

“Breaking news Saudi Arabia announcement support Pakistan with $3 billion as deposit in Pakistan central bank and also financing refined petroleum product with 1. 2 billion us dollars during the year.”

Finance Minister Shaukat Tarin in a tweet early Wednesday said: “Yesterday evening the Finance Minister of Saudi Arabia informed me of the generous gesture of the Kingdom of Saudi Arabia to place $3 billion with SBP and a $1.2 billion deferred oil facility to help the balance of payment of Pakistan.”

“We thank the Crown Prince & the KSA for this kind gesture.”

Minister of Energy Hammad Azhar, who accompanied the Prime Minister on his visit to Saudi Arabia said the Saudi Development Fund has generously announced for Pakistan an oil deferred payments facility of $1.2 billion/annum and a $3 billion deposit with SBP.

“This will help ease pressures on our trade & forex accounts as a result of global commodities price surge,” he said in a message on Twitter.