RIYADH/ISLAMABAD—An agreement for an additional $2 billion deposit from Saudi Arabia’s Saudi Fund for Development will be signed immediately after Eid ul Fitr, according to Pakistani authorities. The government aims to strengthen its foreign exchange reserves, which currently stand at $4.3 billion as of April 14.
A senior government official revealed that Saudi Arabia had confirmed bilateral assistance support to the IMF, which was acknowledged by the lender’s staff. Authorities have confirmed that the deal follows the confirmation of additional financial assistance of $2 billion from KSA and $1 billion from the UAE, respectively, as stated by a government official. Pakistan has not requested further aid from KSA or UAE, other than the confirmed amounts of $2 billion and $1 billion.
Saudi Arabia has additionally renewed its $3 billion deposit, which matured on December 5, 2022, for another year. This deposit is part of Pakistan’s foreign exchange reserves of $4.43 billion held by the State Bank of Pakistan. The deposit was initially made in November 2021, which also included a $1.2 billion oil facility on deferred payment. During Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, Pakistani authorities had requested the rollover of the $3 billion deposit, a $1.2 billion oil facility, and additional deposits.
Saudi Arabia has already disbursed $782.82 million in the form of an oil facility during the first nine months of the current fiscal year 2022-23, with approximately $100 million provided monthly. Moreover, Saudi Arabia provided a $100 million loan in the form of project financing during the current financial year.