Saudi Arabia discusses augmenting $3bn deposit in Pakistan's central bank

Islamabad: Saudi Arabia has discussed enhancing its $3 billion deposit in Pakistan’s central bank “through term extension or otherwise,” according to a joint statement issued at the conclusion of Prime Minister Shehbaz Sharif’s three-day visit to the Kingdom.

Sharif arrived in Saudi Arabia on Thursday on his first official foreign trip since assuming office on April 11. He met Saudi Crown Prince Mohammed bin Salman at the Al-Salam Palace in Jeddah late Friday. 

Their talks, according to the joint statement, revolved around enhancing bilateral trade, investment and encouraging cooperation between the private sector in both countries, among other issues.

Saudi Arabia deposited $3 billion in Pakistan’s central bank to help support its foreign reserves last year. The South Asian nation’s financial situation has not improved since then, and it still requires external



finances due to its widening current account deficit and declining foreign exchange reserves.

Saudi Arabia affirmed its continued support to Pakistan and its economy including the discussion of augmenting the $3 billion deposit with the central bank through term extension or otherwise,” read the joint statement, shared by the Prime Minister’s Office.

The statement said that Pakistan “greatly appreciates” the strong support of the Saudi government to Pakistan.

Finance Minister Miftah Ismail announced on Saturday he was still in the Kingdom for “technical level talks” after Sharif’s departure from the Kingdom.

Saudi Arabia also said the two sides would explore options to further enhance the financing of petroleum products and support structural reforms for Pakistan’s growth.