Pakistan receives $3 billion Saudi deposit: Tarin

KARACHI: Pakistan has received $3 billion from Saudi Arabia under a support package, Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin said on Saturday.

Read more: Saudi Arabia provides $4.2 billion lifeline to Pakistan

In a tweet, the adviser said the State Bank of Pakistan (SBP) has received a deposit of $3 billion from Saudi Arabia.

“I want to thank His Excellency Crown Prince Muhammad Bin Salman and [the] Kingdom of Saudi Arabia for the kind gesture.”

Saudi Arabia on October 26, 2021 announced to deposit $3 billion with the SBP to support Pakistan in managing the balance of payments position.

Good news, US$3 billion Saudi deposit received by SBP. I want to thank His Excellency Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture.

— Shaukat Tarin (@shaukat_tarin) December 4, 2021

On November 29, 2021, a deposit agreement was signed between the Kingdom of Saudi Arabia, represented by the Saudi Fund for Development (SFD), and the government of Pakistan, represented by the SBP.

Under the agreement, SFD would place a deposit of $3 billion with the SBP. The deposit amount under the agreement 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.

Read more: Pakistan, Saudi Arabia agree to strengthen economic ties

Analysts at Topline Securities said the deposit would support the falling rupee and also help curtail the widening of the current account deficit.