Saudi Arabia bolsters Pakistani economy with $2bn deposit increase

Pakistan and Saudi Arabia have reached an agreement to elevate the Saudi deposits in the State Bank of Pakistan (SBP) by $2 billion, from $3 billion to $5 billion.

Mohammad AlQahtani, CEO of Saudi Arabia Holding Co, disclosed the development in a post on Linkedin.

The deal was struck during discussions between Pakistani Prime Minister Muhammad Shehbaz Sharif and Saudi Crown Prince Mohammed Bin Salman on Monday at Al-Safa Palace in Makkah.

The meeting focused on reinforcing the ties between the two countries and exploring opportunities for greater cooperation in various sectors.

Both sides committed to speeding up the execution of a previously announced investment package of $5 billion.

Key topics included the Kingdom's role in supporting Pakistan's economy and the shared intent to bolster trade and investment links.

Additionally, Saudi Arabia consented to invest in the establishment of a new oil refinery and copper mines in Pakistan.

These initiatives are part of a larger agreement in which Saudi Arabia plans to invest $21 billion in Pakistan, including a $14 billion oil refinery and copper mines worth $7 billion.

AlQahtani wrote that these new investments signify the continued close cooperation between the two countries.