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Saudi Arabia extends $3 billion deposit term to cash-strapped Pakistan


CAIRO: Saudi Arabia on Friday extended the term of the $3 billion deposit it made to Pakistanforeign exchange reserves, state news agency SPA and the central bank of Pakistan said.
Saudi Arabia deposited the money in Pakistan’s central bank late last year as a loan to bolster the cash-strapped country’s reserves.
Central bank reserves stood at $7.5 billion as of November 25 of this year.
Too low to cover more than a month of imports, reserves coupled with a widening current account deficit threatened a balance of payments crisis for the South Asian economy, which had to pay an additional $1 billion. bonds next week.
Saudi Development Fund (SFD) has extended the deadline for the deposit provided by the Kingdom of Saudi Arabia in the amount of $3 billion for State Bank of Pakistan“, the bank said in a statement.
It added that, by strengthening the reserve, the money has contributed to solving the challenges of the external sector and achieving sustainable economic growth for the country.
Pakistan is in dire need of external financing as it awaits the 9th review of the International Monetary Fund’s $7 billion bailout package.
The Ministry of Finance of Pakistan also approved the signing of a debt extension of USD 26,150 million with the Japan Bank for International Cooperation under the G-20 debt repayment initiative to mitigate the damage caused by Covid-19.

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