The Saudi Fund for Development (SFD) has extended the term of $3 billion deposits maturing on December 5, 2023, for another year, said the State Bank of Pakistan (SBP) on Wednesday.

“The extension of the term of the deposit is a continuation of the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan, which will help to maintain the foreign currency reserves of Pakistan and contribute to the economic growth of the country,” the SBP statement read.

Pakistan, Saudi Arabia sign $3-billion deposit agreement

The $3 billion-deposit agreement was initially signed through the SFD with the SBP in the year 2021 and rolled over subsequently in 2022, after “the issuance of the royal directives that reflect the continuation of the close relationship between the two brotherly countries”.

The development is a relief amid depleting foreign exchange reserves.

As of November 17, foreign exchange reserves held by the SBP stood at $7.2 billion, hardly enough for 45 days of imports.