SBP receives $3b deposit from Saudi Arabia

The State Bank of Pakistan (SBP) receives $3b deposit from Saudi Arabia aimed at lending support to the foreign exchange reserves on saturday (December 4).

Adviser to Prime Minister on Finance Shaukat Tarin in a tweet on Saturday, stating:

“Good news, SBP receives $3b Saudi deposit. I want to thank Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture.”

https://twitter.com/shaukat_tarin/status/1467059562104635394

According to marketers: Rupee is expected to recover partially as the deposit will support market sentiment as the deposit is expected to lend support to the local currency and help bolster foreign exchange reserves of the country.

Under the deal: On October 27, 2021, Saudi Arabia agreed to provide a $4.2 billion lifeline to Pakistan on an annual basis in the shape of cash assistance and oil on deferred payments. The Middle Eastern nation announced to deposit $3 billion cash in the State Bank of Pakistan and also provide $1.2 billion worth of oil on deferred payments.

Ismail Iqbal Securities Head of Research Fahad Rauf said:

“Pakistan would issue a Sukuk worth $1 billion soon. Receipt of another $1 billion from the International Monetary Fund in expected in January.”