Pakistan’s efforts to strengthen its forex reserves, Saudi Crown Prince Mohammad Bin Salman directed authorities to increase the deposit by $5 billion.
According to the Saudi Press Agency (SPA), Crown Prince Mohammad Bin Salman has directed the SDF to study increasing the deposit to $5 billion by December 2, 2022, confirming the kingdom’s support for Pakistan’s economy and people.
The Saudi leader has also ordered a study to increase Riyadh’s investments in Pakistan, announced on August 25, 2022, to $10 billion.
The announcement comes a day after Chief of Army Staff General Asim Munir met with Crown Prince Mohammad Bin Salman.
The Saudi Fund for Development (SFD) extended its $3 billion deposit in the State Bank of Pakistan last month.
In November 2022, the SBP signed an agreement with the SFD to receive $3bn to improve its foreign exchange reserves.
Pakistan’s forex reserves have fallen to $4.5 billion, enough for three weeks of imports.
Islamabad is trying to revive the IMF’s stalled loan program.
On Monday, a Pakistani delegation met with IMF officials in Geneva on the sidelines of the donors’ conference.
According to a Finance Ministry statement, Finance Minister Muhammad Ishaq Dar and IMF officials discussed climate change’s impact on regional economies.
“The finance minister pledged to finish the Fund program,” it said.
Pakistan has only enough foreign exchange reserves to cover one month’s imports because the lender hasn’t released the $1.1 billion due in November.