The State Bank of Pakistan said, the Saudi Fund for Development has indicated it will extend a $3 billion deposit that has been in the SBP accounts since 2021 by one year.
The deposit was supposed to mature on December 5, however the State Bank of Pakistan announced on Twitter that it has been postponed until 2019.
The deposit was made with SBP and is a portion of the central bank’s foreign exchange reserves, the central bank added.
It is important to note that Saudi Arabia and Pakistan inked the deposit agreement in November of last year. The Saudi Fund for Development (SFD) made a $3 billion deposit with SBP in accordance with this deposit arrangement.
According to the official Saudi Press Agency (SPA), Saudi Arabia declared last month that it would invest $1 billion in Pakistan to help the economy of that nation.
Additionally, Saudi state television said that King Salman bin Abdulaziz Al Saud had ordered a $1 billion investment in Pakistan.
Foreign Minister Bilawal Bhutto Zardari and Saudi FM Prince Faisal bin Farhan bin Abdullah spoke over the phone, during which the latter informed the former of the King’s order.
FM Bilawal praised Saudi Arabia’s pledge to spend $1 billion in Pakistan while recalling the two nations’ long-standing friendship.