Pakistan, Saudi Arabia may ink deal for $2 billion deposits

Pakistani authorities hope that Islamabad will sign a deal for additional deposits of $2 billion from the Kingdom of Saudi Arabia (KSA) after Eid, media reports said. A top government official said that the State Bank of Pakistan will sign a deal with the Saudi Fund for Development (SFD) soon after Eid for an additional $2 billion deposits, The News reported.

He added that Saudi Arabia had confirmed bilateral assistance support, which was also acknowledged by the SFD staff. This agreement is the follow-up on the confirmation of additional financial support of $2 billion and $1 billion from KSA and the UAE, he added, The News reported.

Official sources clarified that Pakistan neither made any fresh request for more support from the KSA nor the UAE, except for the already confirmed $2 billion and $1 billion by these countries, respectively. Saudi Arabia had already rolled out over $3 billion in deposits for one year, which matured on December 5, 2022.

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This $3 billion deposits is part of foreign exchange reserves of $4.43 billion lying with the State Bank of Pakistan.

This $3 billion deposits and $1.2 billion oil facility on deferred payment were provided by the KSA in November 2021 during the tenure of the PTI-led government.

When incumbent Prime Minister Shehbaz Sharif had visited Saudi Arabia after assuming power last year, Pakistani authorities had requested for rollover of $3 billion deposits and a $1.2 billion oil facility for one year, as well as for additional deposits, The News reported.