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Print Print 2023-07-12

Saudi deposits land just prior to key event

  • Pakistan receives deposits of $2 billion from Saudi Arabia
Published July 12, 2023

ISLAMABAD: Pakistan has received deposits of $2 billion from Saudi Arabia – a day before the International Monetary Fund’s Executive Board is scheduled to consider the $3 billion stand-by arrangement (SBA) for the country.

Finance Minister Ishaq Dar in a televised message on Tuesday said that the friendly country - Saudi Arabia had made a commitment in the recent past regarding giving additional $2 billion deposits to Pakistan. On Tuesday, Saudi Arabia placed those deposits with the State Bank of Pakistan (SBP), which would boost the country’s foreign exchange reserves, he added.

“On Friday, our reserves had closed in at less than $10 billion, standing at roughly $9.67 billion so you can now imagine them close to $11.67 billion,” he said. “You can expect this $2 billion to reflect starting this Friday in the SBP reserves,” the minister added.

SBP-held foreign exchange reserves rise $393mn, stand at $4.46bn

The finance minister extended his gratitude towards KSA, particularly King Salman and Crown Prince Muhammad bin Salman on behalf of Prime Minister Shehbaz Sharif and Chief of Army Staff (COAS) General Syed Asim Munir as well as from the public. “We are grateful to them for having always stood by Pakistan like a true brother,” said the minister, adding that as per their announcement, KSA has physically submitted the deposit with the SBP.

The finance minister said the country will witness more positive developments in the days ahead and it will now move towards a growth trajectory.

Prime Minister Shehbaz Sharif also extended his deep gratitude to the leadership of the kingdom for depositing the funds with the SBP.

The premier took to Twitter and stated, “On behalf of the people of Pakistan, I would like to extend my deep gratitude to the leadership and brotherly people of the Kingdom of Saudi Arabia for the US$2 billion deposit with the State Bank of Pakistan.

I would like to especially thank my brother Saudi Crown Prince & Prime Minister His Royal Highness Mohammed bin Salman for ensuring this financial support to Pakistan. This deposit will strengthen Pakistan’s foreign exchange reserves. It reflects the growing confidence of our brotherly countries and the international community in Pakistan’s economic turnaround. We remain committed to making all necessary efforts to improve Pakistan’s economy.

I would also like to appreciate and thank Finance Minister Senator Ishaq Dar and COAS General Syed Asim Munir for the valuable efforts they have made in this regard.“

Copyright Business Recorder, 2023

Comments

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Qasim Jul 12, 2023 09:46am
https://tradingeconomics.com/pakistan/foreign-exchange-reserves Take a look at the chart above. We had over 25 billion in real reserves in the previous government. These guys are building reserves on foreign loans. Don't be fooled by their lies.
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Passionate Pakistani Jul 12, 2023 10:05am
What did Nawaz Sharif and his family promise KSA in return for this favour? What new price will the common man have to pay for this "nawaazish"?
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Builder Jul 12, 2023 01:59pm
@Qasim majority of the economy is still dark economy and those part of this economy converted their reserves to USD and gold which are now at their homes or in lockers. We, as a nation, are hoarders whether it be commodities, currencies or real estate. When you have this much shortage of forex, there is no option but to borrow but no one cares about it, specially the hoarders.
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