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Pakistan receives $3b in funds from Saudi Arabia

Pakistan receives $3b in funds from Saudi Arabia

KARACHI: The State Bank of Pakistan on Saturday received a much-awaited $3 billion deposit from Saudi Fund for Development.

Taking to official Twitter handle, Adviser to Prime Minister on Finance and Revenue Shaukat Tarin announced: “Good news, $3 billion Saudi deposit received by SBP.”

The PM’s aide acknowledged the support provided by Saudi Arabia and wrote: “I want to thank Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture.”

On November 29, the central bank of Pakistan and the Saudi Fund for Development signed a deposit agreement for funds worth $3 billion.

According to a joint statement, under this deposit agreement, SFD shall park $3 billion in the SBP. “The deposit amount under the agreement shall become part of SBP’s foreign exchange reserves,” it had said.

The central bank had stated that the deposit would help support Pakistan’s foreign currency reserves and “contribute towards resolving the adverse effects of the COVID-19 pandemic.”

The deposit agreement was signed by SFD Chief Executive Officer H E Sultan Bin AbdulRahman Al-Marshad and the SBP Governor Dr Reza Baqir at the State Bank of Pakistan in Karachi.

On October 27, the Saudi Fund for Development agreed to deposit $3 billion in the SBP to help support its foreign reserves.

The fund had stated that an official directive was issued to supply $1.2 billion to finance Pakistan’s oil products trade during the year.

According to the central bank, Pakistan’s total liquid foreign reserves stood at $22.498.8 billion on November 26, 2021. The break-up of the figures shows that foreign reserves held by the SBP were standing at $16.010.3 billion and net foreign reserves held by commercial banks were standing at $6.488.5 billion.

During the week ended on November 26, 2021, the SBP’s reserves decreased by $244 million or 1.5%.