Saudi Arabia extends $3bln deposit agreement with Pakistan

The Saudi Fund for Development (SFD), representing the Kingdom of Saudi Arabia, has announced an extension of its $3 billion deposit with Pakistan for an additional year, as reported by the State Bank of Pakistan (SBP) on Thursday.

This extension will maintain the deposit, originally set to mature on December 5, until December 2025.

The decision follows discussions between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammad Bin Salman during the recent 'One Water Summit' held in Riyadh.

The SBP stated that this action by the Saudi Fund underscores Saudi Arabia's ongoing financial support for Pakistan, which plays a crucial role in bolstering Pakistan's foreign exchange reserves and fostering economic development.

The initial $3 billion deposit was established in 2021 through a formal agreement with the SFD and has been rolled over in both 2022 and 2023, demonstrating the robust and enduring relationship between the two nations.

In addition to the deposit extension, Pakistan and Saudi Arabia are enhancing their economic collaboration.

In October, the two countries signed memorandums of understanding (MoUs) valued at $2 billion aimed at boosting bilateral trade and investment.

These agreements, finalized during a visit by a high-ranking Saudi delegation, encompass investments in various sectors, including agriculture, technology, and infrastructure, as well as the establishment of manufacturing facilities in both countries.