KARACHI: Pakistan on Monday signed a deposit agreement with Saudi Arabia to receive the $3 billion deposit from the Kingdom under the pledged financial assistance, according to the State Bank of Pakistan (SBP).
According to a statement released by the central bank, the agreement was signed between Saudi Fund for Development (SFD) Chief Executive Officer Sultan Bin Abdul Rahman Al-Marshad and State Bank of Pakistan (SBP) Governor Dr Reza Baqir.
Under this deposit agreement, Saudi Fund for Development would place a deposit of $3 billion in State Bank of Pakistan. “The deposit amount shall become part of SBP’s Foreign Exchange Reserves,” the statement said.
“It will help support Pakistan’s foreign currency reserves and contribute towards resolving the adverse effects of the COVID-19 pandemic,” the central bank added.
According to the SBP, the deposit agreement reflects the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and it is expected to further augment the economic ties between the two brotherly countries.
On October 27, Saudi Arabia agreed to provide $3 billion to Pakistan in the shape of cash assistance along with $1.2 oil facility on deferred payment. It is the second financial assistance package that the kingdom has extended to Pakistan in the past three years.
The kingdom had extended a similar package valuing at $6 billion in October 2018 to provide a breathing space to Pakistan before the country went to the International Monetary Fund for an extended loan facility.
