The Crown Prince of the Kingdom of Saudi Arabia (KSA) Mohammad bin Salman (MBS) has ordered the Saudi Development Fund to study increasing Saudi investments to $10 billion and deposits in Pakistan to $5 billion. According to the KSA’s official news agency, the crown prince and premier MBS issued instructions to consider increasing the number of deposits in the State Bank of Pakistan (SBP) to $5 billion. The kingdom is also planning to increase its investment in the country to $10 billion. The development comes a day after the Saudi crown prince’s meeting with Chief of Army Staff General Asim Munir, who is on his first overseas official visit to the kingdom. Last month, the Saudi Fund for Development (SFD) extended its term for the $3 billion deposit in the State Bank of Pakistan which was set to mature on December 5. The SBP had signed an agreement with the SFD in November 2022 to receive $3bn, to be placed in the central bank’s account with an aim to improve its foreign exchange reserves.
According to a Saudi Press Agency (SPA) report, Crown Prince Mohammad Bin Salman has directed the SDF to study increasing the amount of the deposit which has previously been extended on December 2, 2022, to hit a $5 billion ceiling, confirming the kingdom’s position supportive to Pakistan’s economy and its people. “This came within the framework of the existing communication between HRH the Crown Prince and Muhammad Shehbaz Sharif, Prime Minister of Pakistan,” the SPA added. The state news agency added that the Saudi leader has also directed to study augmenting Riyadh’s investments in Pakistan which have previously been announced on August 25, 2022, to reach $10 billion. Pakistan is facing a currency crisis due to dwindling forex reserves which have slumped to $4.5 billion – enough for three weeks of imports. On the other hand, Islamabad is making hectic efforts to revive the International Monetary Fund’s (IMF) loan programme stalled for months.
