Daily Times

Pakistan and Saudi Arabia signed a deposit agreement on Monday, paving the way for the receipt of $3 billion in financial assistance.

Saudi Fund for Development (SFD) CEO Sultan Bin Abdul Rahman Al-Marshad and State Bank of Pakistan Governor Dr Reza Baqir signed an agreement on Monday, according to a statement from the SBP, which was released on Monday. According to the agreement, Saudi Arabia’s Fund for Development will deposit $3 billion in Pakistan’s State Bank. “In accordance with the agreement, the SBP’s Foreign Exchange Reserves will be increased by the deposit amount. To aid Pakistan’s foreign currency reserves, as well as to alleviate some of the Covid-19 pandemic’s negative effects, it is a good idea. The deposit agreement demonstrates the Kingdom of Saudi Arabia’s strong and special relationship with Pakistan and will further strengthen economic ties between the two countries,” says SBP statement.

Saudi Arabia and Pakistan have a strong and special relationship, according to the SBP, and the deposit agreement is expected to further strengthen economic ties between the two countries. Pakistan will receive $3 billion in cash assistance and a $1.2 oil facility on deferred payment from Saudi Arabia in October.

Saudi Arabia is providing Pakistan with its second financial aid package in the past three years to help the country avoid a looming external sector crisis.