Karachi, December 5, 2024 – The Saudi Fund for Development (SFD), acting on behalf of the Kingdom of Saudi Arabia, has extended the maturity of its $3 billion deposit with the State Bank of Pakistan (SBP) for another year.
The deposit, which was set to mature on December 5, 2024, will now remain with the SBP, providing crucial support to Pakistan’s economy.
The decision to roll over the deposit highlights Saudi Arabia’s ongoing commitment to bolstering Pakistan’s economic stability. This extension will enhance Pakistan’s foreign exchange reserves, ensuring greater financial stability and contributing to the country’s economic growth and development.
The $3 billion deposit was originally signed under an agreement between the SFD and Pakistan in 2021. It was subsequently extended in 2022 and 2023, following royal directives that underscore the strong and enduring ties between the two nations. These directives reflect Saudi Arabia’s steadfast support for Pakistan as a key strategic and economic partner.
The rollover comes at a critical time for Pakistan, which continues to navigate economic challenges, including managing its balance of payments and foreign exchange requirements. By extending the deposit, Saudi Arabia has reinforced its role as a trusted ally, providing Pakistan with a buffer to meet its immediate financial obligations and maintain economic stability.
In a statement, the SFD emphasized that this support aligns with the Kingdom’s broader strategy to assist friendly nations in achieving sustainable economic development. Pakistan has greatly benefited from such assistance in the past, with Saudi Arabia consistently extending financial and logistical support during times of need.
The renewal of this deposit not only strengthens Pakistan’s economic position but also reaffirms the close and brotherly relations between the two countries. It serves as a testament to their shared commitment to fostering regional stability and economic cooperation.
Pakistan’s officials have expressed gratitude for Saudi Arabia’s continued assistance, acknowledging the deposit as a vital lifeline for the country’s economy. The gesture underscores the importance of bilateral partnerships in addressing global financial challenges and promoting shared prosperity.