ISLAMABAD, 01 December 2021, (TON): Pakistan moved one step closer to receiving $3 billion deposit from Saudi Arabia, as the two countries signed a deposit agreement to pave way for receipt of the financial assistance.

According to a statement released by the State Bank of Pakistan on Monday, the agreement was signed between the Saudi Fund for Development (SFD) Chief Executive Officer Sultan Bin Abdul Rahman Al-Marshad and State Bank of Pakistan (SBP) Governor Dr Reza Baqir.

Under the deposit deal, SDF would park $3 billion in the State Bank of Pakistan.

The statement said “the deposit amount shall become part of the central bank’s foreign exchange reserves. It will help support Pakistan’s foreign currency reserves.”

According to the SBP “the deposit agreement reflects the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and it is expected to further augment the economic ties between the two brotherly countries.”

 Saudi Arabia agreed to provide $3 billion to Pakistan in the shape of cash assistance along with $1.2 oil facility on deferred payment. It is the second financial assistance package that the kingdom has extended to Pakistan in the past three years, aiming to help the country manage a brewing external sector crisis.