Saudi Arabia extends term for $3bn deposit in SBP
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The State Bank of Pakistan (SBP) announced on Friday that Saudi Arabia has extended its term for a $3 billion deposit in the central bank through the Saudi Fund for Development (SFD) in support of the country’s economy.
According to a press release, the decision was an implementation of King Salman bin Abdulaziz Al Saud’s royal directives.
In November last year, the SBP had signed an agreement with the SFD to receive $3bn, which would be placed in the central bank’s account with an aim to improve its foreign exchange reserves.
The SBP’s statement today added that the extension in the term “contributed to meet external sector challenges and achieve sustainable economic growth for the country.”
“The extension of the term of the deposit is a continuation of the support provided by the Saudi Arabian government to the Islamic Republic of Pakistan,” the statement concluded. “The deposit aimed to shore up the foreign currency reserves in the SBP and help Pakistan in facing the economic repercussions of the Covid-19 pandemic.”
In September, the SFD had confirmed the rollover of a $3bn deposit for one more year. The deposit was set to mature on December 5.
In the last week of October 2021, Saudi Arabia had agreed to revive its financial support to Pakistan, including about $3bn in safe deposits and $1.2bn worth of oil supplies on deferred payments.
The agreement was reached during the visit of former prime minister Imran Khan to the kingdom the same month.
Extension to help Pakistan’s economy: PM Shehbaz
Prime Minister Shehbaz Sharif has welcomed the extension, saying that it would help improve Pakistan’s economic situation.
“Pakistan’s economic self-reliance is the first national agenda for which political stability and a balanced economy are the need of the hour,” he said in a statement issued on Friday.
The premier thanked the Saudi government and Prince Abdulaziz Bin Salman. “We deeply appreciate the love Prince Salman has for Pakistan.”
PM Shehbaz went on to say that the kingdom had, once again, played the role of an “elder brother”.
Finance Minister Ishaq Dar also announced the extension on Twitter, ending it with “Long live Pak-Saudi friendship!”
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On DawnNews
Dec 02, 2022 04:49pm
Thanks to SA.
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Dec 02, 2022 04:53pm
So what is the big deal? it is a deposit that cannot be used, and cannot help in avoiding default.
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Dec 02, 2022 05:02pm
Congratulations to Finance Minister!
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Dec 02, 2022 05:03pm
Saudi Arabia has truly come to help Pakistan in its Economic
hardship days. We must appreciate and further foster relations
with Saudi Arabia in other spheres of life.
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Dec 02, 2022 05:04pm
It will only extend govt folly
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Dec 02, 2022 05:06pm
Does anyone asks what is the cost of these loans and more loans to pay off the loans and the roll overs. No point thanking the Saudis, they are getting a good return on their money.
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Dec 02, 2022 05:07pm
When will Pakistan stand on its own feet and not take loans, more loans to pay off loans, the vicious cycle continues.
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Dec 02, 2022 05:08pm
Will PMLN be distributing sweets for this massive achievement?
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Dec 02, 2022 05:09pm
Lets all celebrate being slaves to Saudi Arabia.
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Dec 02, 2022 05:13pm
Pak-Saudi friendship; Zindabaad.
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Dec 02, 2022 05:18pm
Great Achievement of the Corrupt Government!!
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Dec 02, 2022 05:19pm
Beggars can't be choosers.
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Dec 02, 2022 05:23pm
Thank you MBS
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Dec 02, 2022 05:25pm
an Economic lifeline with Political strings.
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Dec 02, 2022 05:27pm
KSA to the rescue. This is but a band-aid where surgery is needed. I hope this does not lull the decision-makers to sleep once again. Now that Imran Khan's designs have been defeated, tough decisions need to be made now.
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Dec 02, 2022 05:36pm
Great performance by Dar saab. He is demanding and a tough negotiater.
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Dec 02, 2022 05:38pm
As if they had a choice , do we have the money to return ?
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Dec 02, 2022 05:43pm
True to the cliche that there is no free lunch, this has major implications on Pakistan's sovereignty . But that is nothing new.
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Dec 02, 2022 05:52pm
Thank you oh great king. The people of Pakistan your loyal subjects are forever grateful to his highness, and fear your might.
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Dec 02, 2022 05:59pm
Did you fall on your knees to say thank you?
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Dec 02, 2022 06:16pm
like all the investors and ratings agencies out there dont know your for ex is mostly borrowed money..like really..how dumb can you people be...well never mind..you all will find a new low.
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Dec 02, 2022 06:17pm
Hmm... no wonder NS and rest of his gang with Maryaam as the Property Advisor along, travellng around Europe, searching for new prime properties in which to invest this money.
We know how this story will end. Pakistan will be paying back this loan over the next 10 years.
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Dec 02, 2022 06:17pm
Begger PM nd incompetent finance minister r chewing the buble facilitated by gr8 IK.
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Dec 02, 2022 06:22pm
So, Saudi has decided to extend the ventilator support to Pakistan. How long would Pakistan survive ?
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Dec 02, 2022 06:25pm
Great help MBS.
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Dec 02, 2022 06:28pm
PM should ask Saudi Arabia to gift us this money. Long live Pak- Saudi brotherhood.
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Dec 02, 2022 06:32pm
So out of $7B forex reserves, $3B are KSA deposits, $3B more are UAE deposits so SBP only has $1B left
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Dec 02, 2022 06:55pm
Corrupt government and establishment have trapped the who nation in loans loans and loans.
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Dec 02, 2022 07:04pm
Free money, Pakistan-Saudi friendship Zindabad !
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Dec 02, 2022 07:22pm
If it is just a psychological increase in SBP reserves, which cannot be used, how could it be any help?
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Dec 02, 2022 07:24pm
Loans are not free money
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Dec 02, 2022 07:39pm
Saudis will always keep Pakistan under the thumb. Financial aid from Saudi or other sources like IMF is lifeline for Pakistan. Never debt free country.
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Dec 02, 2022 08:00pm
Extended charity to a Beggar Nation.
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Dec 02, 2022 08:00pm
Who said boot licking does not work? In other news, fascist India added $15 billion to its foreign exchange reserves in ONE week, which is almost DOUBLE of our TOTAL reserves. So fascism works too.
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Dec 02, 2022 08:29pm
After 3 successive democratically elected Political Governments & 3 Army Chiefs over the last 14 years, it is proven without an iota of doubt that no one can match the good gentleman's performance in Military, Diplomatic & Economic terms.
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Dec 02, 2022 08:33pm
The good gentleman gave respect, dignity & prestige to Pakistan. But the last 14 years of Democracy have transformed it into a Beggar Nation.
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Dec 02, 2022 09:00pm
One will continue to roll over if interest is paid. What is the interest?
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Dec 02, 2022 09:07pm
Arms extended, palms open, head bowed down, kneeling
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Dec 02, 2022 09:19pm
Good omen. But need to encourage greater trade and investment opportunities.
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Dec 02, 2022 09:26pm
Begging for money, as if that is something to be proud of.
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Dec 02, 2022 09:34pm
interest rate ?....
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Dec 02, 2022 09:38pm
Old news with new wrapper.
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Dec 02, 2022 09:42pm
If Pakistan is not a default state, why Pakistan is holding 3 bn of KSA?
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Dec 02, 2022 09:44pm
We never say no to your money.
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Dec 02, 2022 10:01pm
Roll over that’s all you have been doing to keep people working like slaves
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Dec 02, 2022 10:29pm
Fantastic result. Pakistan is marching forward and upward.
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Dec 02, 2022 10:32pm
Beggar must not be chooser
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Dec 02, 2022 10:35pm
Dar is lying, Pakistan already has defaulted. This 3 billion Pakistan cannot spend anywhere. 7.5 billion reserves we have at the moment and 6 billions are from friendly countries.
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Dec 02, 2022 10:54pm
So not even Saudi Arabia believe in interest-free sharia law economy ! What a farce !
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Dec 02, 2022 11:55pm
When a country has to beg and plead for a mere $3B, how much more shameful can it get? Many companies have much more than 3B dollars.
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Dec 03, 2022 12:52am
State Bank must clarify about Direct pension payment scheme to pensioners , through the same existing accounts or to open a new Bank account, why joint account already with spouse is allowed or not .This is causing much confusion/difficulties to pensioners. All Banks must be informed about this ,indemnity on Stamp paper must be done away as parent Department/ministries are aware of their pensioners.
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Dec 03, 2022 02:13am
Why are still begging after 75 years of independence.
Correct politicians, corrupt beauracrats and corrupt..........
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Dec 03, 2022 02:53am
An achievement indeed for CM SS.
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Dec 03, 2022 03:41am
Here we go again!! You can have the money but you can not spend it. But you have to pay interest on it.
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Dec 03, 2022 05:10am
I respect Saudis extension in the background of Pakiistan nearing default every day, but then, Pakiistan has been abusing such support. In a way we have gotten used to it and perhaps we have made ourselves dependent on such generosities of friends.
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Dec 03, 2022 05:14am
Pakistan's lame duck government is stilling living in old times of getting free money from overseas begging and boot polishing while the world moved on and rejects habitual, irresponsible and professional beggars
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Dec 03, 2022 06:09am
Don't count on chickens before they hatch. KSA is a friendly country but what are the terms and conditions of the loan specifically interest rate payment schedule. KSA is a Islamic country but they are not going to forgive interest payment.
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Dec 03, 2022 07:07am
Spending money we don't have
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Dec 03, 2022 07:20am
Loan term extend does not mean free money as Shabaz is trying to show off
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Dec 03, 2022 07:52am
Pay 8% interest, that’s about $240 million in interest per year. We are heading towards to bankruptcy.
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Dec 03, 2022 07:57am
It's just like extending the rope to hang oneself.
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Dec 03, 2022 08:26am
Beggars can never be choosers.Bring back the looted money in western ghost accounts just as ghost hospitals,doctors,schools,teachers,roads and public services in Sindh.
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Dec 03, 2022 01:38pm
A friend indeed
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