ISLAMABAD    -   The State Bank of Pakistan (SBP) on Sunday announced that the Sau­di Fund for Development (SFD) had 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 $3b in safe deposits and $1.2b 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. It should be noted that last week, the country’s for­eign exchange reserves held by the SBP faced a decline of 1.9% on a weekly basis. As of September 9, SBP’s foreign currency reserves were re­corded at $8,624.0 million, down by $176 million com­pared with $8,799.9 million on September 2.