Saudi Arabia has extended the tenure of the $3 billion deposit placed with Pakistan.
In November 2021, the SBP had signed an agreement with the Saudi Fund for Development (SFD) to receive $3bn, which would be placed in the central bank’s account with an aim to improve its foreign exchange reserves.
The extension of the $3 billion deposit term will help Pakistan in shoring up its foreign exchange reserves and strengthening domestic economy
The Saudi Development Fund has approved a one-year extension for the $3 billion deposit, the sources said.
They further say the tenure of the Saudi deposit was set to expire today. The $3 billion from Saudi Arabia is currently held with the State Bank of Pakistan.
Saudi Arabia had initially signed the agreement in 2021 to provide Pakistan with the $3 billion deposit.