KARACHI: In a major development on economic front, Kingdom of Saudi Arabia (KSA) has extended term for USD3.0 billion deposit placed with Pakistan for another year.
According to State Bank of Pakistan (SBP) the Saudi Fund for Development (SFD) on behalf of the KSA has extended the term for the deposit of USD3.0 billion maturing on 08 December 2025 for additional one year.
The said amount has been placed with the State Bank on behalf of Islamic Republic of Pakistan.
“The extension of the term of the deposit is continuation of the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan, which will help in strengthening the foreign exchange reserves of Pakistan and contribute to the country’s economic growth and development,” the SBP said.
It is worth noting that The USD3 billion deposit agreement was initially signed with SFD in the year 2021 and subsequently rolled over since then in 2022, 2023 and 2024, on Pakistan’s request to support the economy. Economists termed it a positive development on economic front and will help maintain the SBP’s reserves at a sustainable level. As per Governor SBP Jamil Ahmed projections Pakistan’s foreign exchange reserves are likely to reach USD15.5 billion by end of December 2025 and USD17.8 billion end June 2026.
Pakistan’s economy is performing well as major economic indicators are moving in right direction. Pakistan’s debt to GDP ratio declined from 31 percent to 26 percent. This will also help to further boost the country’s economy.
Copyright Business Recorder, 2025
