Pakistan Monday moved one step closer to receiving $3 billion deposit from Saudi Arabia, as the two countries signed a deposit agreement to pave way for receipt of the financial assistance.
According to a statement released by the State Bank of Pakistan on Monday, the agreement was signed between the Saudi Fund for Development (SFD) Chief Executive Officer Sultan Bin Abdul Rahman Al-Marshad and State Bank of Pakistan (SBP) Governor Dr Reza Baqir. Under the deposit deal, SDF would park $3 billion in the State Bank of Pakistan.
“The deposit amount shall become part of the central bank’s foreign exchange reserves. It will help support Pakistan’s foreign currency reserves and contribute towards resolving the adverse effects of the COVID-19 pandemic,” said the statement. According to the SBP, the deposit agreement reflects the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and it is expected to further augment the economic ties between the two brotherly countries, says a media report.
On October 27, Saudi Arabia agreed to provide $3 billion to Pakistan in the shape of cash assistance along with $1.2 oil facility on deferred payment. It is the second financial assistance package that the kingdom has extended to Pakistan in the past three years, aiming to help the country manage a brewing external sector crisis. The kingdom had extended a similar package valuing at $6 billion in October 2018 to provide a breathing space to Pakistan before the country went to the International Monetary Fund for an extended loan facility.
Meanwhile, Advisor to the PM on Finance Shaukat Tarin Monday called on Prime Minister Imran Khan and briefed him about the Saudi financial assistance as well as the oil facility on deferred payments.
The Prime Minister was also apprised of the progress on revenue receipts, reports APP.
