RIYADH: Saudi Crown Prince Mohammad Bin Salman Tuesday directed the authorities to study increasing the amount of the deposit by $2 billion to reach $5 billion.
Which is a major boost to Pakistan’s efforts to strengthen its forex reserves amid the worsening currency crisis.
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 today, 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.
The announcement comes a day after Chief of Army Staff General Asim Munir’s meeting with Crown Prince Mohammad Bin Salman during his first overseas official visit to the country.
Pakistan is facing a currency crisis due to dwindling forex reserves which have slumped to $4.5 billion — enough for three weeks of imports.
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