KARACHI: Finance Minister Senator Ishaq Dar on Friday said the Saudi Fund for Development has extended the term of its deposit of $3 billion with the State Bank of Pakistan
“In continuation of the support to Pakistan by the Kingdom of Saudi Arabia, the Saudi Fund for Development has extended the term of its deposit of $3 billion with the State Bank of Pakistan,” the finance minister said on his official Twitter account.
The State Bank of Pakistan (SBP) also confirmed that the Saudi Fund for Development (SFD) on the directives of King Salman bin Abdulaziz Al Saud, has extended the term of $3 billion deposit.
“The extension of the term of the deposit is a continuation of the support provided by the government of the Kingdom of Saudi Arabia (KSA) to the Islamic Republic of Pakistan, as the deposit aimed to shore up the foreign currency reserves in the Bank and help Pakistan in facing the economic repercussions of the COVID-19 pandemic,” an SBP statement said on Friday.
“It, furthermore, contributed to meet external sector challenges and achieve sustainable economic growth for the country.” The $3 billion deposit agreement was signed in November 2021.
Earlier this week, on Tuesday, the Ministry of Finance, Government of Pakistan announced that it received $500 million from Asian Infrastructure Investment Bank (AIIB). The funds are deposited with the SBP and will augment reserves.
On Thursday, SBP’s reserves decreased by $327 million touching $7.5 billion. The country’s total reserves including reserves with banks went down by $267 million to touch $13.4 billion. As a result, the import cover based on the average imports of the last 12 months clocked in at 1.1 months, which is significantly low.
