RIYADH: In a major boost to Pakistan’s efforts to shore up its foreign exchange reserves amid a worsening currency crisis, Saudi Crown Prince Mohammed bin Salman on Tuesday directed officials to release 2 billion in reserves. Study how to add dollars to reach $5 billion.
Last month, the Saudi Fund for Development (SFD) extended its term for a $3 billion deposit in the State Bank of Pakistan that was due to expire on December 5.
The State Bank signed an agreement with the SFD in November 2022 to receive $3bn, which will be held in a central bank account for the purpose of improving its foreign exchange reserves.
According to a report by Saudi Press Agency (SPA) today, Crown Prince Mohammed bin Salman has instructed the SDF to study increasing the amount of the deposit, which was initially increased to 5 billion on December 2, 2022. The dollar limit was reached, confirming the kingdom’s position. Contributor to Pakistan’s economy and its people.
Saudi Arabia is Studying to Augment its Investments in Pakistan to Reach $10 b and Increasing its Deposit to CBP to $5b, it was Announced.https://t.co/rc9ZBBQfCe#SPAGOV pic.twitter.com/Muxj1GpqoY
— SPAENG (@Spa_Eng) January 10, 2023
“This comes within the framework of the ongoing communication between HRH the Crown Prince and Pakistan’s Prime Minister Muhammad Shahbaz Sharif,” SPA added.
JEE News added that the Saudi leader has also directed to study increasing Riyadh’s investment in Pakistan, which was earlier announced on August 25, 2022, to reach $10 billion.
The announcement came a day after Chief of Army Staff General Asim Munir met Crown Prince Mohammed bin Salman during his first foreign official visit to the country.
Pakistan is facing a currency crisis due to dwindling foreign exchange reserves that have fallen to $4.5 billion, enough for three weeks of imports.
On the other hand, Islamabad is trying hard to revive the International Monetary Fund’s (IMF) loan program that has been stalled for months.
The Pakistani delegation met IMF officials on the sidelines of the donors’ conference in Geneva on Monday and reiterated their commitment to complete the programme.
Finance Minister Muhammad Ishaq Dar and IMF officials “discussed the challenges facing regional economies in the context of climate change,” according to a finance ministry statement after the meeting.
“(The) finance minister reiterated his commitment to complete the fund programme,” he added.
The lender has yet to approve the release of $1.1 billion that was originally supposed to be disbursed in November last year, leaving Pakistan with only enough foreign exchange reserves to cover one month’s worth of imports.
