Saudi Crown Prince Mohammad Bin Salman on Tuesday gave the authorities the go-ahead to research raising the deposit’s amount by $2 billion to $5 billion, which will significantly aid Pakistan’s efforts to strengthen its foreign exchange reserves in the face of the growing economic crisis.
The Saudi Fund for Development (SFD), whose $3 billion investment in the State Bank of Pakistan was due to mature on December 5, extended the period of that deposit last month.
In order to increase its foreign exchange reserves, the SBP and the SFD reached an agreement in November 2022 for the SBP to receive $3 billion.
Crown Prince Mohammad Bin Salman, according to a report from the Saudi Press Agency (SPA), has instructed the SDF to investigate raising the deposit’s amount, which was previously extended to December 2, 2022, to a maximum of $5 billion, reiterating the kingdom’s support for Pakistan’s people and economy.
The Pakistani Prime Minister Muhammad Shehbaz Sharif and HRH the Crown Prince had previously communicated about this, the SPA continued.
The Saudi leader also ordered to examine increasing Riyadh’s investments in Pakistan, which were earlier announced on August 25, 2022, to reach $10 billion, according to the state news agency.
The declaration came the day after Crown Prince Mohammad Bin Salman met with Chief of Army Staff General Asim Munir on his first official visit to the nation from outside.
Due to declining foreign exchange reserves, which have fallen below $4.5 billion, or three weeks’ worth of imports, Pakistan is currently experiencing a currency crisis.
The Pakistani Prime Minister Muhammad Shehbaz Sharif and HRH the Crown Prince had previously communicated about this, the SPA continued.
Islamabad, on the other hand, is working tirelessly to restart the International Monetary Fund’s (IMF) loan programme, which has been stagnant for months.
On the eve of the donors’ summit, a Pakistani delegation met with IMF representatives in Geneva and reaffirmed its commitment to seeing the programme through.
Following the meeting, a statement from the Finance Ministry said that Finance Minister Muhammad Ishaq Dar and IMF officials “addressed challenges to regional economies in the face of climate change.” It said, “(The) finance minister reaffirmed the resolve to finish the Fund programme.”
Pakistan only has enough foreign exchange reserves to handle one month’s worth of imports because the lender has yet to sanction the transfer of the $1.1 billion that was originally scheduled to be distributed in November of last year.
