KARACHI: The State Bank of Pakistan (SBP) and the Saudi Fund for Development (SFD) signed a $3 billion deposit agreement, a statement said on Monday.

State Bank Governor Dr Reza Baqir and SFD chief executive officer Sultan Bin AbdulRahman Al-Marshad signed the agreement.

Under this deposit agreement, the Saudi fund would place $3 billion with the central bank. The deposit amount would become part of the SBP’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.

The deposit agreement reflects the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and will further augment the economic ties between the two brotherly countries.