Saudi Arabia extends $3 billion deposit term to impoverished Pakistan – Times of India


CAIRO: Saudi Arabia on Friday extended the maturity of a $3 billion deposit it made to Pakistan’s foreign reserves, state news agency SPA and Pakistan’s central bank said.
Saudi Arabia deposited the money with the Pakistani central bank at the end of last year as a loan to fill the country’s money shortage.
Central bank reserves stood at $7.5 billion as of November 25 this year.
Too low to cover more than a month’s worth of imports, reserves along with a widening current account deficit have threatened a balance of payments crisis for the South Asian economy, which is due another $1 billion in bonds next week.
Saudi Development Fund (SFD) extended the maturity of the $3 billion deposit provided by the Kingdom of Saudi Arabia to the State Bank of Pakistanthe bank said in a statement.
By bolstering reserves, it added, the money has helped meet external sector challenges and achieve sustainable economic growth for the country.
Pakistan urgently needs external financing as it awaits the 9th review of a $7 billion bailout package by the International Monetary Fund (IMF).
Pakistan’s finance ministry also approved the signing of a $26,150 million debt restructuring with the Bank of Japan for International Cooperation under the G-20 debt service initiative to limit losses from Covid-19.

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