RIYADH: Amid of noise of the economic crisis, there is a piece of good news likely to come from the brother country Saudi Arabia. Prince Muhammad Bin Salman directed to mull increasing the deposit amount in the State Bank of Pakistan (SBP) by $5 billion, reported SPA.
“Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister have directed to study augmenting the Kingdom of Saudi Arabia’s investments in the sisterly Islamic Republic of Pakistan which have previously been announced on August 25, 2022, to reach $10 billion.”
The development appeared after the visit of Chief of Army Staff General Asim Munir, he is still on an official visit to the Kingdom of Saudi Arabia and the United Arab Emirates from 4th to 10th January.
“The Kingdom’s position is supportive of the economy of the Islamic Republic of Pakistan and its sisterly people,” reported SPA.
Pakistan and Saudi Arabia signed the accord of Saudi Development funds in 2021, “Under this deposit agreement, SFD shall place a deposit of USD 3 billion with SBP. The deposit amount under the agreement shall become part of SBP’s Foreign Exchange Reserves,” said the press release.
However, the aforementioned investment can increase the cash crunch, Pakistan is already bogged down under the external dept., and foreign reserves of the centre bank.
As per the statement of SBP Foreign Reserve of Pakistan had declined by $245 billion and stood at $5.576 billion, and the tranche of IMF has not appeared yet, which is considered as a hope to avoid default.
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