Saudi Fund for Development deposits $ 3 billion with SBP, provides $ 1.2 billion finance for oil

Islamabad: The Saudi Fund for Development has announced a “generous directive” to deposit an amount of US three billion dollars with the State Bank of Pakistan to help the government support its foreign currency reserves and support it in facing the repercussions of the Corona pandemic.

According to the news by the Saudi Press Agency – SPA, the deposit of US 3 billion dollars was in addition, to an oil deferred payment facility of US 1.2 billion dollars for petroleum products, during the year.

The announcement would help ease pressure on Pakistan’s foreign exchange reserves, due to the recent sharp hike in global commodity prices.

Information Minister Fawad Chaudhry shared the major development on his Twitter handle, a day after the return of Prime Minister Imran Khan from a three-day visit to the Kingdom to attend the Middle East Green Initiative of the Saudi Crown Prince.

“Breaking news Saudi Arabia announcement support Pakistan with 3 billion US dollar as deposit in Pakistan central bank and also financing refined petroleum product with 1. 2 billion us dollars during the year,” he tweeted.

Minister of Energy Hammad Azhar, who accompanied the Prime Minister on his visit to Saudi Arabia said the Saudi Development Fund has generously announced for Pakistan an oil deferred payments facility of $1.2bn/annum and a $3 bn deposit with SBP.

“This will help ease pressures on our trade & forex accounts as a result of global commodities price surge,” he said in a message on Twitter.