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Saudi Arabia to increase investments, deposit in Pakistan

January 10, 2023 at 2:53 pm

Pakistani Prime Minister Shahbaz Sharif (L) is welcomed by Saudi Arabian Crown Prince Mohammed bin Salman (R) during his official visit at As-Salam Palace in Jeddah, Saudi Arabia on April 30, 2022 [Royal Court of Saudi Arabia/Anadolu Agency]

Saudi Arabia will boost its investments in Pakistan to reach $10 billion and raise its deposits in Pakistan’s Central Bank to $5 billion, official media reported on Tuesday, Anadolu News Agency reports.

According to a statement run via the state-run Saudi Press Agency, Saudi Arabia is studying augmenting investments and deposit in Pakistan.

“This came within the framework of the existing communication between HRH, the Crown Prince (Mohammed bin Salman) and Muhammad Shehbaz Sharif, Prime Minister of Pakistan,” it added.

Previously, the State Bank of Pakistan signed a $3 billion agreement with the Saudi Fund for Development (SFD) for improving foreign exchange reserves.

The SFD had confirmed the rollover of a deposit worth $3 billion in September 2022 with a maturity date on 5 December, but Saudi Arabia extended the term on 2 December.

Pakistan, whose foreign exchange reserves are at an eight-year low with $5.6 billion, has been struggling with cash problems.

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