ISLAMABAD (TDI): The Kingdom of Saudi Arabia has given consent to postpone the payment of $3 billion dollar deposit with the State Bank of Pakistan (SBP) for another one year, providing breathing space to Pakistan forex reserves.
The SBP made an announcement that the Saudi Fund for Development (SFD), on behalf of the Kingdom of Saudi Arabia, has postponed the repayment of deposit, which was set to due for payment on Dec 5, 2024. The deposit would now be kept with SBP deposits for another twelve months.
Pakistan’s economic managers were seeking this extension, who were planning for a daunting $26bn debt servicing obligation in the current financial year.
Authorities had recently stated that some friendly countries were actually not likely to roll over $14bn in loans. However, the government is continuously negotiating same points with China and the UAE to guarantee further economic stability.
The $3bn deposit, initially given in 2021 and rolled over in 2022 and 2023, is taken as a continuation of Saudi Arabia’s help for Pakistan economy.
Read More: Pakistan Fiscal Balance Surplus After 24 Years
The SBP-held forex reserves have been steadily rising, with the central bank saying a $620 million rise in the week ending Nov 29, 2024. Of this rise, $500m arrived as an incoming from the Asian Development Bank (ADB).
As of Nov 29, SBP forex reserves stood at $12.038bn, marking an expansion of 47.5% ($3.877bn) since the start of the year.
Also Read: Pakistan Pledges to Complete IMF Program
Total forex reserves, including those held by Pakistan’s commercial banks, grew by $544m to touch $16.62bn during the week. Of this, commercial banks have $4.581bn, as per the SBP.
