Ishaq Dar appreciates Saudi Arabia for extending $3bn deposit’s term

• Ambassador of Kingdom of Saudi Arabia calls on Finance Minister Ishaq Dar
• Dar thanked the ambassaforr on extending $3bn deposit in SBP
• He apprised about the ongoing post-flood reconstruction

ISLAMABAD: Finance Minister Senator Ishaq Dar has thanked the Kingdom of Saudi Arabia for extending term of $3 billon deposit in the State Bank of Pakistan (SBP).

Ambassador of Kingdom of Saudi Arabia, Nawaf Bin Said Al-Malki called on Federal Minister for Finance and Revenue Ishaq Dar and discussed bilateral issues.

The finance minister extended a warm welcome to the Saudi Ambassador and highlighted the historical, religious, cultural and long-standing bilateral ties between Pakistan and Saudi Arabia.

During the meeting, it was shared that both states enjoy exceptional relations on various fronts including economy and trade. The finance minister apprised the ambassador about the ongoing post-flood reconstruction and rehabilitation program.

Dar thanked the ambassador for extending the term of $3 billion deposit in State Bank of Pakistan (SBP) by Saudi Fund for Development (SFD). He also thanked SFD for their valuable investments in different sectors of Pakistan’s economy.

Saudi envoy Nawaf Bin Said Al-Malki acknowledged the long-term relationship and shared that Kingdom of Saudi Arabia aims at further deepening the economic and commercial ties with Pakistan.

The finance minister expressed gratitude towards the Kingdom of Saudi Arabia for continuous support and cooperation with Pakistan.

In September, Saudi Arabia confirmed renewing its $3 billion deposit with the State Bank of Pakistan for one year after the country face a financial crisis.

The central bank said Saudi Fund for Development (SFD) has confirmed rollover of $3bn deposit maturing on 5 Decemeber 22 for one year.

It said the deposit is placed with the SBP and is part of its foreign exchange reserves. It added that this reflects continuing strong and special relationship between KSA and Pakistan.

In November 2021, Saudi Arabia, represented by the Saudi Fund for Development (SFD), and the Government of Pakistan, represented by the State Bank of Pakistan (SBP), signed an initial deposit agreement of $3 billion.

In August this year, Saudi Arabia announced investing $1 billion in Pakistan as part of its plan to help revive the country’s economy reeling in the last few months.

Saudi King Salman bin Abdulaziz Al Saud has issued a directive to invest $1 billion in Pakistan, in confirmation of the Kingdom’s support of Pakistan economy and its people.

Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah had received a telephone call from his Bilawal Bhutto Zardari and informed him of the King’s directive.

It is not clear where and when the latest investment would be made. Saudi Arabia is one of the key countries that Pakistan has been seeking financial support.

Saudi Arabia extended to support multiple times to Pakistan. It pledged $4.2 billion in assistance when former prime minister Imran Khan visited the Kingdom.

This included a deposit of $3 billion with the SBP to help shore up its reserves and a facility to finance oil derivatives trade worth $1.2 billion during the year.

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