A $3 billion deposit for the State Bank of Pakistan (SBP) that was due to mature on December 5, 2022, has been certified by the Saudi Fund for Development to be rolled over for a year.
However, the Kingdom of Saudi Arabia did not make an official announcement regarding the supply of an additional $1.2 billion oil facility with deferred payment.
The rollover provided a significant reprieve for the nation, which is currently having trouble securing outside funding to support its foreign exchange reserves.
According to figures issued by the central bank a few days ago, the SBP’s foreign exchange reserves were approximately $8.6 billion as of September 9.
On the other side, the IMF expressed sympathy to Pakistan for the terrible floods but made no further financial commitments.
“Saudi Fund for Development has confirmed rollover of $3 billion deposits maturing on 5th Dec 22 for one year. The deposit is placed with SBP and is part of its forex reserves. This reflects continuing strong and special relationship between KSA and Pakistan,” State Bank of Pakistan (SBP) tweeted on Sunday.
The State Bank of Pakistan currently has $8.6 billion in foreign exchange reserves, which includes the $3 billion rollover.
KSA gave the PTI-led government this $3 billion deposit and a $1.2 billion oil facility on a deferred payment basis in November 2021.
Requests for larger deposits and oil facilities, as well as a rollover of $4.2 billion for a year, were made when the current Prime Minister Shehbaz Sharif visited the KSA after winning the election.
The first arrangement, which includes a $3 billion deposit made to the Central Bank of Pakistan by the Kingdom of Saudi Arabia, will strengthen the nation’s foreign exchange reserves and assist lessen the negative consequences of the Covid-19 outbreak.
Reza Baqer, Governor of the Central Bank of Pakistan, and Sultan bin Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development, signed the agreement at the Central Bank’s offices in Karachi in the presence of His Excellency Bandar bin Fahad Al Dayel, the Kingdom’s Consul General.
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