Saudi Arabia extends duration of $3bn deposit in cash-strapped Pakistan

CAIRO: Saudi Arabia on Friday extended the term of a $3 billion deposit it had made to Pakistanforeign exchange reserves of the state news agency SPA and the central bank of Pakistan said.
Saudi Arabia deposited the money in Pakistan’s central bank late last year as a loan to bolster the cash-strapped country’s reserves.
Central bank reserves stood at $7.5 billion as of November 25 this year.
Too low to cover more than a month of imports, reserves along with a growing current account deficit have threatened a balance of payments crisis for the South Asian economy, which must make another bond payment a billion dollars next week.
Saudi Fund for Development (SFD) extended the term of the deposit provided by the Kingdom of Saudi Arabia by an amount of $3 billion to State Bank of Pakistan“, the bank said in a statement.
By bolstering reserves, he added, the money has helped address external sector challenges and achieve sustainable economic growth for the country.
Pakistan urgently needed external financing pending the 9th review of a $7 billion bailout package by the International Monetary Fund (IMF).
Pakistan’s Ministry of Finance has also approved the signing of a $26.150 million debt rescheduling with the Japan Bank for International Cooperation under the G-20 debt service initiative to mitigate losses. of Covid-19.

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