Saudi Fund extends $3 billion deposit to Pakistan for one year

The State Bank of Pakistan (SBP) announced on Wednesday that Saudi Arabia has extended a $3 billion deposit to Pakistan for another year to help boost foreign exchange reserves and stabilize the local currency.

The Saudi Fund for Development (SFD), representing Saudi Arabia, has extended the $3 billion deposit, which was due on December 5, for one more year, according to an SBP circular.

The SBP said this extension continues Saudi Arabia's support for Pakistan, helping to maintain foreign exchange reserves and support the country's economic growth.

The original deposit agreement was signed with the SFD in November 2021, and the amount was added to Pakistan's reserves on the state's behalf. The amount was renewed in 2022 and 2023, following royal directives that show the strong relationship between the two countries.

Foreign exchange reserves

Pakistan's foreign exchange reserves held by the central bank increased by $84 million, reaching $12.03 billion in the week ending November 29.

The country's foreign exchange reserves have increased by over $2.5 billion in the past four months. Less than half of this amount ($1.03 billion) came from the first loan installment from the International Monetary Fund (IMF) in late September.