The Saudi Fund for Development (SFD) has announced a one-year extension in the maturity period of a $3 billion deposit, set to mature on December 5, 2023. According to a statement released by the State Bank of Pakistan (SBP) on Wednesday, the funds are currently held in the State Bank of Pakistan.
This extension in the deposit agreement reaffirms the strong economic ties between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan. The deposit, initially signed in 2021 through the SFD, was renewed for a second term in 2022 following royal directives.
The $3 billion deposit plays a crucial role in providing financial support to Pakistan, contributing to the stability of the country’s foreign exchange reserves. The extension reflects the confidence and commitment of Saudi Arabia in Pakistan’s economic development and trade balance.
This financial assistance comes at a critical time for Pakistan as it grapples with economic challenges and aims for sustained growth. The deposit has proven instrumental in helping Pakistan maintain a stable balance of payments, ensuring the country’s resilience in the face of economic uncertainties.
The initial agreement, inked in 2021, was a testament to the longstanding and fraternal relationship between the two nations. The subsequent extension underscores the mutual desire to strengthen economic cooperation and promote shared interests.
The funds deposited with the State Bank of Pakistan serve as a valuable resource for Pakistan’s foreign exchange reserves, supporting the country’s efforts to enhance its economic stability and foster development initiatives. The extension aligns with the shared vision of both nations to deepen their economic partnership and promote regional prosperity.
As Pakistan continues to navigate economic challenges and pursue sustainable development, the extended deposit agreement provides a timely and significant boost. The diplomatic and economic collaboration between Saudi Arabia and Pakistan stands as a model for strategic cooperation, emphasizing mutual support and solidarity in the pursuit of shared goals.
