RIYADH: Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud has directed to conduct study to increase amount of deposit it made to Pakistan’s forex reserves to $ 5 billion as South Asian country is currently facing economic woes.

Earlier, kingdom has parked $ 3 billion in State Bank of Pakistan (SBP). In December last, it extended term of deposit for further three years, helping country tackle economic fallout of devastating floods and financial challenges.

Saudi Arabia is Studying to Augment its Investments in Pakistan to Reach $10 b and Increasing its Deposit to CBP to $5b, it was Announced.https://t.co/rc9ZBBQfCe#SPAGOV pic.twitter.com/Muxj1GpqoY

— SPAENG (@Spa_Eng) January 10, 2023

Despite assistance from brotherly country, forex reserves of Pakistan continued to deplete due to debt servicing. Earlier this month, forex reserves held by central bank plunged to nearly decade low of $ 4.5 billion after repayment of $ 1.2 billion loan to UAE banks. Rreserves held by commercial banks are standing at $ 6 billion.

In order to save country from defaulting on international liabilities, coalition government is reaching out to friendly states and International Monetary Fund.

Published in The Daily National Courier, January, 11 2023

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.