KSA to deposit $3 bn in SBP

ISLAMABAD: Saudi Arabia has agreed to provide $3 billion deposits for the State Bank of Pakistan (SBP) in order to shore up the country’s foreign exchange reserves. The oil facility of $150 million per month will also be kicked off very soon.

Pakistan is making efforts to finalise staff level agreement with the IMF and announcement in this regard is expected very soon. This package from Saudi Arabia is expected to go a long way to accomplish the 6th review under Extended Fund Facility (EFF).

During the recently held visit of Prime Minister Imran Khan along with other cabinet ministers, including Adviser on Finance Shaukat Tarin, the Kingdom of Saudi Arabia agreed for extending all out support to Pakistan at this difficult juncture of our history. Shaukat Tarin and Minister for Energy Hammad Azhar would address a press conference today (Wednesday) to brief the media about more details on this front.

Minister for Information Fawad Chaudhry also made the announcement on Twitter. “Saudi Arabia announced support to Pakistan with 3 billion dollars as deposit in Pakistan central bank and also financing refined petroleum products with 1. 2 billion dollars during the year,” he tweeted.

Minister for Energy Hammad Azhar also made the announcement through a tweet. “Saudi Development Fund to give oil on deferred payments facility to Pakistan. Pakistan to get $1.2b per annum oil facility. Saudi Development to deposit $3bn deposit with SBP. This will help ease pressures on trade & forex accounts as a result of global commodities price surge,” he tweeted.