ISLAMABAD: In a significant development to bolster Pakistan’s economic stability, the Saudi Fund for Development (SFD) has announced the extension of its $3 billion deposit placed with the State Bank of Pakistan (SBP) for an additional year. Originally maturing on December 5, 2024, the deposit will now remain with Pakistan’s central bank until December 2025.
This extension underscores the Kingdom of Saudi Arabia’s continued commitment to supporting Pakistan’s economy by reinforcing its foreign exchange reserves. The funds play a vital role in enhancing Pakistan’s financial stability, enabling sustained economic growth and development.
The $3 billion deposit agreement was initially signed in 2021 under the directives of the Saudi leadership, aimed at strengthening ties with Pakistan. Over the years, the agreement has been renewed multiple times, including extensions in 2022 and 2023, symbolizing the enduring relationship between the two nations.
Pakistan, grappling with economic challenges, views this gesture as a testament to the strong bond between the “brotherly” countries. The rollover provides a critical lifeline for maintaining adequate reserves, a key factor in meeting international obligations and stabilizing the rupee.
The Saudi government’s continued financial support comes at a time when Pakistan is navigating through global economic headwinds. This latest extension further solidifies Saudi Arabia’s role as a key economic partner and ally in Pakistan’s journey toward financial recovery.
