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The State Bank of Pakistan (SBP) on Sunday announced that the Saudi Fund for Development (SFD) confirmed the rollover of a $3 billion deposit for one more year.
The deposit was set to mature on December 5, the SBP tweeted, adding that the amount was placed with the central bank as part of its foreign exchange reserves.
“This reflects continuing strong and special relationship between KSA (Kingdom of Saudi Arabia) and Pakistan,” the SBP said.
The agreement for the deposit was originally signed in November 2021 with an aim to improve the SBP’s foreign exchange reserves.
The agreement was signed by SFD Chief Executive Officer Sultan Bin Abdul Rahman Al-Marshad and former SBP governor Dr Reza Baqir at the State Bank in Karachi.
In the last week of October 2021, Saudi Arabia had agreed to revive its financial support to Pakistan, including about $3bn in safe deposits and $1.2bn worth of oil supplies on deferred payments. The agreement was reached during the visit of former prime minister Imran Khan to the kingdom the same month.
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Comments (88) Closed
Sep 18, 2022 07:02pm
What revenue generating projects will the money be used for ?
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Sep 18, 2022 07:08pm
A friend in need is a friend indeed. We must however start our journey towards ending our dependence on loans by doing the needful.
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Sep 18, 2022 07:12pm
Good news...
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Sep 18, 2022 07:13pm
Pakistan does not have the money to pay anyone. Its only a matter of time before the default becomes official
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Sep 18, 2022 07:14pm
Pak-Saudi friendship; Zindabaad.
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Sep 18, 2022 07:19pm
So Pakistan;s actual Forex reserves are $3 billion less than what we think
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Sep 18, 2022 07:21pm
Congratulations Pakistan .
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Sep 18, 2022 07:28pm
No No No. Stop giving aid to PDM. Through NAB cases of 20bn dollars have now been made legal. These people are corrupt and dont give even a single ruppee to poor people
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Sep 18, 2022 07:49pm
Congratulations!! Pakistan's foreign policy is working.
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Sep 18, 2022 07:51pm
As long as SBP gives good interest on the deposit, it is a great win for SA. They will continue to renew the deposit.
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Sep 18, 2022 07:58pm
Hurray, Party Time. Let the celebration begin !!
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Sep 18, 2022 08:03pm
@Dr. Salaria, Aamir Ahmad, here we go again.
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Sep 18, 2022 08:14pm
It is only the Arab countries which have always helped Pakistan in difficult times. Thanks to the rulers of SA.
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Sep 18, 2022 08:15pm
Imran and IK made this country bankrupt in their 4 years rule.
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Sep 18, 2022 08:18pm
@bhaRAT©,
Not 3 but 4. 1B is from UAE also
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Sep 18, 2022 08:20pm
A Band-Aid treatment of a deep mound, a temporary lifeline.
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Sep 18, 2022 08:22pm
@Bilal Mustafa Kaifi ,
Property development in Park Lane! The only project they know...
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Sep 18, 2022 08:24pm
What is the option? Can Pakistan payback?
They have to wait and get interest.
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Sep 18, 2022 08:24pm
@kamal chowkidar, beggars are never tired.
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Sep 18, 2022 08:26pm
Congrats on the big achievement
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Sep 18, 2022 08:29pm
Another bad news for PTI Folks who want to destabilize Pakistan's economy.
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Sep 18, 2022 08:29pm
Forward half of the funds to bhai in London.
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Sep 18, 2022 08:33pm
Oh, yes happy days are here again, let the music play & dance today, let tomorrow take care of itself.
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Sep 18, 2022 08:35pm
More foreign trips in the offing?
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Sep 18, 2022 08:37pm
Until the MBS has a change of heart and demands the money at short notice!
Wait a few months and his tune will change
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Sep 18, 2022 08:37pm
@Bilal Mustafa Kaifi , This money cannot be used this is just for balancing of payments
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Sep 18, 2022 08:40pm
@Dr. Salaria, Aamir Ahmad, It’s a short-term loan, not a grant. It has to be paid back next year. On the other hand, Saudis are actually investing in India. India-Saudi Friendship Zindabad.
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Sep 18, 2022 08:41pm
What a shame as Pakistani?
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Sep 18, 2022 08:46pm
Is this a deposit or an “investment” by a fellow Muslim country with which pakistani has brotherly and fraternal relations? :) :)
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Sep 18, 2022 08:47pm
I thought Saudis are smarter than this choice of investment in corrupt and the crook ! Pakistan needs the chaprasi money back!
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Sep 18, 2022 08:49pm
My credit card company wants me to pay as little as possible each month. I don't know the interest rate, but I think it is high.
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Sep 18, 2022 08:50pm
Another reason to celebrate.
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Sep 18, 2022 08:52pm
Another shocking news for IK.
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Sep 18, 2022 09:00pm
@Dr. Salaria, Aamir Ahmad, Yes, the Saudis gave you money so they are good...but if the Saudis appease to the India then they're bad. What a shameful stand you have on issues.
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Sep 18, 2022 09:02pm
@Asma, Read the News Report carefully once again. This amount
has been given to Pakistan not to any individual or political party and
if you are from Pakistan then you should appreciate it. Congratulations
for the good news.
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Sep 18, 2022 09:02pm
Ya sheikh, SHUKRAN, the corrupt politicians are like Hungry hyenas,,,,,,
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Sep 18, 2022 09:02pm
@Bilal Mustafa Kaifi , Politicians pockets
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Sep 18, 2022 09:02pm
@sincere pakistan, for politicians ,,,, right
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Sep 18, 2022 09:03pm
When will we stop begging?
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Sep 18, 2022 09:07pm
They will put in $3 billion but take out $30 billion leaving us with not even $3 billion
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Sep 18, 2022 09:08pm
A temporary deposit is part of ForEx. Horrible.
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Sep 18, 2022 09:23pm
MBS has been snubbed again from attending the Queen’s funeral; yet the Arabs can’t recognize their true friends!
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Sep 18, 2022 09:23pm
How much commission was paid to Shehbaz and Zardari families
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Sep 18, 2022 09:29pm
@Justice, here in London on my €500000 I get 1.75%, SA is changing 4+ % interest. Pakistan politicians a collection of shameless stooges and corrupt to the bone.
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Sep 18, 2022 09:30pm
Monday's big news: Dollar slides 2PKR !
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Sep 18, 2022 09:32pm
It's a deposit - not aid nor a loan, because it requires Pakistan to pay some profit on that amount, which the Saudis could earn by depositing into any foreign bank or invest in government bonds, T-Bills or equities.
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Sep 18, 2022 09:43pm
How long we will live such a pathetic life? We will always be beggars?
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Sep 18, 2022 09:45pm
Our powerful quarters like to keep us beggars. No chance to become independent unless people raise against such mafia.
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Sep 18, 2022 09:52pm
@Bilal Mustafa Kaifi , at least not the billion fake trees
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Sep 18, 2022 10:01pm
It’s crazy. Too much interest to be paid.
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Sep 18, 2022 10:03pm
Thanks to IK for getting agreement. Saudis obviously think IK is going to be in the saddle soon
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Sep 18, 2022 10:06pm
@yogi, dream on. Been hearing this prediction for last many decades but Pakistan is still here. Good luck Khalistan movement
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Sep 18, 2022 10:11pm
How much interest pays Pakistan?
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Sep 18, 2022 10:26pm
Just wondering why did Saudi Arabia become so anti PTI and are welcoming PMLN?
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Sep 18, 2022 10:27pm
Long live MBS Long live kingdom of Saudi Arabia
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Sep 18, 2022 10:28pm
Habitual beggars, for the last 70 years, world record. Money is then Looted by Politician Criminals.
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Sep 18, 2022 10:28pm
This is no way to run a country
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Sep 18, 2022 10:28pm
Great
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Sep 18, 2022 10:33pm
So they are just going to not to ask for the return for another year. But where will Pakistan get the remaining deficit for the year fulfilled from?
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Sep 18, 2022 11:38pm
How long more will we celeberate loans and deposits? May be until we declare us bankrupt?
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Sep 18, 2022 11:51pm
IKN is much better at begging for money.
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Sep 18, 2022 11:54pm
@Bilal Mustafa Kaifi , this money remains with the state bank as reserves, its allows Pakistan to use its down dollars for imports and debt servicing. Its a loan.
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Sep 18, 2022 11:56pm
The nation has become so accustomed to begging for money in the last 13 years of Democracy that now they don't even care. They don't even feel ashamed. They feel happy that they have a leader like IKN who is good at begging for money.
(This is my personal experience with conversations with ordinary people.)
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Sep 18, 2022 11:58pm
It is not an aid. Is it interest free?
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Sep 19, 2022 12:09am
@bhaRAT©, No. You forget that we have already availed IMF loans of US$ 25 Billion in the last 13 years of Democracy. So it's actually Minus US$ 28 Billion. Further, Chinese / CPEC loans are very secret & completely unknown & unreported :- we shall only find out much later when the s**t hits the ceiling - i.e. when we have long crossed past the SL level.
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Sep 19, 2022 12:10am
Shahbaz shareef you r star Allhumdulilah
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Sep 19, 2022 12:18am
@Asma, You are so unfair. You are stopping him just when he is traveling to London to shop for properties. Flood Relief donations have just arrived, so he could not have traveled earlier.
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Sep 19, 2022 12:43am
Strong and special relationship between KSA and Pakistan for $3b deposit for one more year. Isn't that STRANGE to be said by State Bank of Pakistan?
Our beloved country is already getting oil products on deferred payment since many decades from KSA.
Shouldn't such need be idealized by getting more jobs, more trade etc. etc.?
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Sep 19, 2022 01:11am
@Justice, they are renewing deposit because the $3B doesn't matter to them. They are under no illusions that they'll be paid back the principal, let alone the interest.
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Sep 19, 2022 01:48am
This is Indian oil purchase payment coming to Pakistan via Saudi. Saudi had to give their highest award to Modi for continued purchase else India could buy all oil from Russia, Venezuela and Iraq . Pakistan should also give their highest award else india will reduce Saudi purchase
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Sep 19, 2022 02:37am
@Bilal Mustafa Kaifi , They are not giving money. They gave in past and it was due to give back in December and now they will ask for it back after one year. And probably more interest
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Sep 19, 2022 03:57am
@Asma, it's about forex reserves that prevents rupee from devalue and it will remain to improve fiscal policy in better position but will not be utilised so far.
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Sep 19, 2022 03:58am
Thanks to the Saudi Arabian goverment for their continued support in various ways, over many decades .
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Sep 19, 2022 04:16am
Unless I am wrong, Saudis derive profit from these deposits.
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Sep 19, 2022 04:33am
@Nadeem Sheikh,
It is just a current deposit rollover collecting interest to keep Pakistan Foreign Exchange reserves level high. It is NOT Saudi investment in businesses.
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Sep 19, 2022 04:58am
The end is defined and clear which is Bankruptcy. It's only a question of when, not if. Only a complete change of thinking and joint efforts by ALL to try to stand on it's own feet will save the country from the inevitable disaster.
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Sep 19, 2022 05:25am
Lip service. He got nothing
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Sep 19, 2022 05:35am
With it's never ending bailout demand, one day Pakistan will bankrupt KSA and UAE
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Sep 19, 2022 05:55am
This is A+ foreign policy. Proud of Pakistan.
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Sep 19, 2022 06:04am
Anyone who gives money to Pakistan becomes iron brother
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Sep 19, 2022 06:16am
No New loan but allow to revive 3 Billion dollar loan for one more year with interest
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Sep 19, 2022 08:10am
This is not money that can be used for any real purpose and it really is more paper value at an interest so that we can borrow from overseas lenders . This is part goodwill part risk free income for the Saudis .
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Sep 19, 2022 08:16am
Over the past 75 years, in an effort to maintain Military parity with India, Pakistan’s elite resorted to borrowed growth and fighting wars for other countries. Sure, you got money, but the corruption and greed for more money without any exports or industrial growth and lack of education in the masses, Pakistan started borrowing more loans. Now it is time to re-pay and you have no way to generate money. Default and bankruptcy coming soon...sorry!
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Sep 19, 2022 09:22am
@Suchbaath , Where did I say it is investment in business
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Sep 19, 2022 10:42am
This is a big loan and it indicates that how strong ties both enjoy and Saudi Arabia willingness to help Pakistan
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Sep 19, 2022 10:43am
Saudi Arabia has always stood next to Pakistan though there are some rumors by people who aim to weaken the ties between the countries.
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Sep 19, 2022 11:40am
@Sonam, Begging for money is not A+ Foreign Policy. It's shamelessness.
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Sep 19, 2022 11:52am
Parliamentarians & Bureaucrats imported Luxury Cars because they could well afford it. But, in the process, they drove down the Exchange Rate, and thereby drove up Inflation, bringing the nation to starvation.
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