KARACHI: On behalf of the Kingdom of Saudi Arabia, the Saudi Fund for Development (SFD), has extended the term for the $3 billion deposit maturing on December 5, 2024, for another year, the State Bank of Pakistan said on Thursday.
This development followed by Prime Minister Shehbaz Sharif and Saudi Arabia Crown Prince Mohammad Bin Salman’s meeting during the former’s visit to Riyadh two days ago on the sidelines of the “One Water Summit”.
During the meeting, both leaders had agreed to bring about a qualitative change in the economic, trade and investment relationship between the two countries.
They also expressed satisfaction at the pace of progress in the implementation of Saudi MoUs and agreements regarding investment in Pakistan.
In a statement on Thursday, the central bank said: “The said amount has been placed with State Bank of Pakistan on behalf of Islamic Republic of Pakistan.”
“The extension of the term of the deposit is continuation of the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan, which will help in strengthening the foreign exchange reserves of Pakistan and contribute to the country’s economic growth and development,” it added.
It is worth noting that the $3 billion deposit agreement was initially signed with SFD in the year 2021 and subsequently rolled over in 2022 and 2023, after the issuance of the royal directives that reflect the continuation of the close relationship between the two brotherly countries, as per the central bank.
Alongside getting financial aid from the kingdom, Pakistan had signed several memorandums of understanding (MoUs) worth $2 billion in October to boost bilateral trade and investment with Saudi Arabia.