Saudi Arabia Extends Pakistan’s $3 Billion Deposit for Another Year

Web Desk | 5 months ago

Islamabad: Saudi Arabia has once again extended the duration of its $3 billion deposit placed with the State Bank of Pakistan (SBP), providing important financial support to the country.

According to SBP sources, the Saudi Development Fund (SDF) has approved a one-year extension for the $3 billion deposit. The existing term was set to expire today, after which Saudi Arabia granted the additional extension.

Officials confirmed that the funds are currently held with the State Bank as part of Pakistan’s foreign exchange reserves.

It is worth noting that Saudi Arabia initially signed the agreement in 2021, providing Pakistan with a $3 billion deposit aimed at stabilizing the country’s economic position.

Pakistan’s trade sector has suffered a significant blow in the first five months of the current fiscal year. Data from the Pakistan Bureau of Statistics reveals a sharp decline in exports and a rise in imports.

The trade deficit widened by over 37%, increasing by $4.19 billion compared to the same period last year. Between July and November, the trade gap surged to over $15.46 billion. This marks a worsening trend for the country’s economy.

Exports saw a steep decline of $877 million during the July-November period. Total exports dropped by 6.39%, from $13.72 billion last year to $12.84 billion this year. Regional tensions and trade barriers have disrupted trade flows, especially affecting food exports.

Officials attribute the worsening performance to these factors, as well as growing restrictions on global trade. This has compounded the challenges facing Pakistan’s export sector.