In a move that highlights continued support for Pakistan, the Saudi Fund for Development (SFD) has extended the $3 billion deposit set to mature on December 5, 2024, for another year, according to the State Bank of Pakistan. This decision follows a recent meeting between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammad Bin Salman during Sharif’s visit to Riyadh, where both leaders discussed enhancing economic, trade, and investment ties between the two countries.
The extension of the deposit is part of Saudi Arabia’s ongoing support to Pakistan, helping to bolster its foreign exchange reserves and aid in economic growth. The original agreement for the deposit was signed in 2021 and has been renewed in 2022 and 2023, reflecting the strong bilateral relationship between the two nations.
In addition to the deposit, Pakistan and Saudi Arabia have strengthened their economic collaboration with several agreements worth $2 billion. These include investments in agriculture, semiconductor manufacturing, textiles, and various infrastructure projects. These agreements were signed in October during a visit by a high-level Saudi delegation.
Pakistan’s financial situation has been precarious in recent years, facing the threat of default. However, the country has relied on assistance from international bodies like the IMF, as well as support from countries like Saudi Arabia and the UAE, to avoid a default and meet the IMF’s financial targets.
