ANL 13.94 Decreased By ▼ -0.36 (-2.52%)
ASC 13.70 Decreased By ▼ -0.20 (-1.44%)
ASL 15.26 Decreased By ▼ -0.07 (-0.46%)
AVN 99.60 Decreased By ▼ -3.39 (-3.29%)
BOP 8.66 Decreased By ▼ -0.09 (-1.03%)
CNERGY 7.02 Decreased By ▼ -0.14 (-1.96%)
FFL 9.39 Decreased By ▼ -0.29 (-3%)
FNEL 9.19 Decreased By ▼ -0.22 (-2.34%)
GGGL 14.90 Decreased By ▼ -0.40 (-2.61%)
GGL 22.59 Decreased By ▼ -0.72 (-3.09%)
GTECH 10.15 Decreased By ▼ -0.21 (-2.03%)
HUMNL 6.68 No Change ▼ 0.00 (0%)
KEL 3.28 Decreased By ▼ -0.03 (-0.91%)
KOSM 4.34 Decreased By ▼ -0.19 (-4.19%)
MLCF 33.90 Decreased By ▼ -0.20 (-0.59%)
PACE 4.33 Decreased By ▼ -0.24 (-5.25%)
PIBTL 7.44 Decreased By ▼ -0.12 (-1.59%)
PRL 14.76 Decreased By ▼ -0.33 (-2.19%)
PTC 9.19 Decreased By ▼ -0.10 (-1.08%)
SILK 1.45 Decreased By ▼ -0.08 (-5.23%)
SNGP 34.29 Decreased By ▼ -0.23 (-0.67%)
TELE 17.68 Decreased By ▼ -0.41 (-2.27%)
TPL 15.59 Decreased By ▼ -0.51 (-3.17%)
TPLP 29.75 Decreased By ▼ -0.65 (-2.14%)
TREET 40.80 Decreased By ▼ -0.60 (-1.45%)
TRG 96.80 Decreased By ▼ -7.10 (-6.83%)
UNITY 28.69 Increased By ▲ 0.19 (0.67%)
WAVES 15.65 Decreased By ▼ -0.15 (-0.95%)
WTL 2.39 Decreased By ▼ -0.08 (-3.24%)
YOUW 7.96 Decreased By ▼ -0.32 (-3.86%)
BR100 4,687 Decreased By -28 (-0.59%)
BR30 18,641 Decreased By -616.6 (-3.2%)
KSE100 45,612 Decreased By -151.3 (-0.33%)
KSE30 17,942 Decreased By -56.4 (-0.31%)

coronavirus
Coronavirus
VERY HIGH
Source: covid.gov.pk
Pakistan Deaths
29,029
1024hr
Pakistan Cases
1,333,521
5,03424hr
Sindh
505,930
Punjab
454,372
Balochistan
33,729
Islamabad
111,855
KPK
182,419

KARACHI: The State Bank of Pakistan (SBP) Monday signed an agreement with the Saudi Fund for Development (SFD) for a deposit of $3 billion to build Pakistan’s foreign exchange reserves.

In October, during the visit of Prime Minister Imran Khan, Saudi Arabia agreed to provide some $3 billion in foreign currency support in the shape of safe deposits for a year to address Pakistan’s balance of payments crisis. The neighboring country also announced a one-year deferred payment facility for import of oil.

Accordingly, on Saturday, the federal cabinet approved a summary of the deal of Saudi Arabia’s $3 billion support package for Pakistan in safe deposits and $1.2bn worth of oil supplies on deferred payments.

After approval from the federal cabinet, a formal deposit agreement has been signed between the Saudi Fund for Development and the State Bank.

Pakistan, Saudi Arabia sign $3-billion deposit agreement

According to the SBP announcement, a deposit agreement between the Kingdom of Saudi Arabia, represented by the Saudi Fund for Development (SFD), and the Government of the Islamic Republic of Pakistan, represented by the State Bank of Pakistan (SBP), has been signed on Monday by the Chief Executive Officer of SFD, H.E. Sultan Bin Abdul Rahman Al-Marshad and the Governor SBP, Dr. Reza Baqir at the State Bank of Pakistan in Karachi, Pakistan.

Under this deposit agreement, SFD will place a deposit of $3billion with SBP for the support of external accounts. The deposit amount under the agreement will become part of 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 SBP said that 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.

With the arrival of these inflows, the country’s total liquid foreign reserves are likely to cross $ 25 billion mark. Currently, total foreign exchange reserves stood at $ 22.774 billion on 19-November 2021. The SBP’s reserves are estimated to reach $19.5 billion.

The deposit of $3 billion from Saudi Arabia will support the balance of payment, which is deteriorating followed by higher import bills. Pakistan posted over $5 billion current account deficit in July-Oct of FY22 as against $1.3 billion surplus in the same period of last fiscal year.

Copyright Business Recorder, 2021

Comments

Comments are closed.