Saudi development fund confirms rollover of $3bn deposit for one year: SBP

E-Paper | September 30, 2026

Saudi development fund confirms rollover of $3bn deposit for one year: SBP

Dawn.com Published September 18, 2022

The State Bank of Pakistan (SBP) on Sunday announced that the Saudi Fund for Development (SFD) confirmed the rollover of a $3 billion deposit for one more year.

The deposit was set to mature on December 5, the SBP tweeted, adding that the amount was placed with the central bank as part of its foreign exchange reserves.

“This reflects continuing strong and special relationship between KSA (Kingdom of Saudi Arabia) and Pakistan,” the SBP said.

The agreement for the deposit was originally signed in November 2021 with an aim to improve the SBP’s foreign exchange reserves.

The agreement was signed by SFD Chief Executive Officer Sultan Bin Abdul Rahman Al-Marshad and former SBP governor Dr Reza Baqir at the State Bank in Karachi.

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.

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Pak Saudi Ties

Business

Riyadh confirms $1bn investment in Pakistan

SBP signs agreement for $3bn Saudi fund

Saudi govt revives $3bn support to Pakistan

Bilal Mustafa Kaifi

Sep 18, 2022 07:02pm

What revenue generating projects will the money be used for ?

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Nadeem Sheikh

Sep 18, 2022 07:08pm

A friend in need is a friend indeed. We must however start our journey towards ending our dependence on loans by doing the needful.

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sincere pakistan

Sep 18, 2022 07:12pm

Good news...

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yogi

Sep 18, 2022 07:13pm

Pakistan does not have the money to pay anyone. Its only a matter of time before the default becomes official

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Dr. Salaria, Aamir Ahmad

Sep 18, 2022 07:14pm

Pak-Saudi friendship; Zindabaad.

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bhaRAT©

Sep 18, 2022 07:19pm

So Pakistan;s actual Forex reserves are $3 billion less than what we think

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Jaya

Sep 18, 2022 07:21pm

Congratulations Pakistan .

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Asma

Sep 18, 2022 07:28pm

No No No. Stop giving aid to PDM. Through NAB cases of 20bn dollars have now been made legal. These people are corrupt and dont give even a single ruppee to poor people

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kamal chowkidar

Sep 18, 2022 07:49pm

Congratulations!! Pakistan's foreign policy is working.

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Justice

Sep 18, 2022 07:51pm

As long as SBP gives good interest on the deposit, it is a great win for SA. They will continue to renew the deposit.

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Justice

Sep 18, 2022 07:58pm

Hurray, Party Time. Let the celebration begin !!

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De de duwa milegi

Sep 18, 2022 08:03pm

@Dr. Salaria, Aamir Ahmad, here we go again.

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SMD

Sep 18, 2022 08:14pm

It is only the Arab countries which have always helped Pakistan in difficult times. Thanks to the rulers of SA.

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MirzaCanada

Sep 18, 2022 08:15pm

Imran and IK made this country bankrupt in their 4 years rule.

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Adamgir

Sep 18, 2022 08:18pm

@bhaRAT©, Not 3 but 4. 1B is from UAE also

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Ghani K

Sep 18, 2022 08:20pm

A Band-Aid treatment of a deep mound, a temporary lifeline.

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Jaws

Sep 18, 2022 08:22pm

@Bilal Mustafa Kaifi , Property development in Park Lane! The only project they know...

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Sep 18, 2022 08:24pm

What is the option? Can Pakistan payback? They have to wait and get interest.

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Ghani K

Sep 18, 2022 08:24pm

@kamal chowkidar, beggars are never tired.

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Arjun

Sep 18, 2022 08:26pm

Congrats on the big achievement

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Philosopher (From Japan)

Sep 18, 2022 08:29pm

Another bad news for PTI Folks who want to destabilize Pakistan's economy.

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Fastcracker

Sep 18, 2022 08:29pm

Forward half of the funds to bhai in London.

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Ghani K

Sep 18, 2022 08:33pm

Oh, yes happy days are here again, let the music play & dance today, let tomorrow take care of itself.

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Alla Bux

Sep 18, 2022 08:35pm

More foreign trips in the offing?

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Mahmood

Sep 18, 2022 08:37pm

Until the MBS has a change of heart and demands the money at short notice! Wait a few months and his tune will change

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Alrehan

Sep 18, 2022 08:37pm

@Bilal Mustafa Kaifi , This money cannot be used this is just for balancing of payments

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Skeptic2

Sep 18, 2022 08:40pm

@Dr. Salaria, Aamir Ahmad, It’s a short-term loan, not a grant. It has to be paid back next year. On the other hand, Saudis are actually investing in India. India-Saudi Friendship Zindabad.

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ENGR Hamid Shafiq

Sep 18, 2022 08:41pm

What a shame as Pakistani?

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Inzy

Sep 18, 2022 08:46pm

Is this a deposit or an “investment” by a fellow Muslim country with which pakistani has brotherly and fraternal relations? :) :)

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Anser

Sep 18, 2022 08:47pm

I thought Saudis are smarter than this choice of investment in corrupt and the crook ! Pakistan needs the chaprasi money back!

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Casablanca

Sep 18, 2022 08:49pm

My credit card company wants me to pay as little as possible each month. I don't know the interest rate, but I think it is high.

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Dr. Master Baitor.

Sep 18, 2022 08:50pm

Another reason to celebrate.

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Akhtar Husain

Sep 18, 2022 08:52pm

Another shocking news for IK.

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EEsan

Sep 18, 2022 09:00pm

@Dr. Salaria, Aamir Ahmad, Yes, the Saudis gave you money so they are good...but if the Saudis appease to the India then they're bad. What a shameful stand you have on issues.

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Jamil Soomro, New York City

Sep 18, 2022 09:02pm

@Asma, Read the News Report carefully once again. This amount has been given to Pakistan not to any individual or political party and if you are from Pakistan then you should appreciate it. Congratulations for the good news.

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Nadeem

Sep 18, 2022 09:02pm

Ya sheikh, SHUKRAN, the corrupt politicians are like Hungry hyenas,,,,,,

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Nadeem

Sep 18, 2022 09:02pm

@Bilal Mustafa Kaifi , Politicians pockets

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Nadeem

Sep 18, 2022 09:02pm

@sincere pakistan, for politicians ,,,, right

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Hammad ahmad

Sep 18, 2022 09:03pm

When will we stop begging?

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Dr Aisha

Sep 18, 2022 09:07pm

They will put in $3 billion but take out $30 billion leaving us with not even $3 billion

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Tariq

Sep 18, 2022 09:08pm

A temporary deposit is part of ForEx. Horrible.

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AttiyaCanada

Sep 18, 2022 09:23pm

MBS has been snubbed again from attending the Queen’s funeral; yet the Arabs can’t recognize their true friends!

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Denali

Sep 18, 2022 09:23pm

How much commission was paid to Shehbaz and Zardari families

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Liaqut Hussaon

Sep 18, 2022 09:29pm

@Justice, here in London on my €500000 I get 1.75%, SA is changing 4+ % interest. Pakistan politicians a collection of shameless stooges and corrupt to the bone.

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Shoaib

Sep 18, 2022 09:30pm

Monday's big news: Dollar slides 2PKR !

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Mahmood

Sep 18, 2022 09:32pm

It's a deposit - not aid nor a loan, because it requires Pakistan to pay some profit on that amount, which the Saudis could earn by depositing into any foreign bank or invest in government bonds, T-Bills or equities.

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Jameel Khan

Sep 18, 2022 09:43pm

How long we will live such a pathetic life? We will always be beggars?

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Nadeem

Sep 18, 2022 09:45pm

Our powerful quarters like to keep us beggars. No chance to become independent unless people raise against such mafia.

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Ibrahim S

Sep 18, 2022 09:52pm

@Bilal Mustafa Kaifi , at least not the billion fake trees

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George Vincent

Sep 18, 2022 10:01pm

It’s crazy. Too much interest to be paid.

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Salman

Sep 18, 2022 10:03pm

Thanks to IK for getting agreement. Saudis obviously think IK is going to be in the saddle soon

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MAK123

Sep 18, 2022 10:06pm

@yogi, dream on. Been hearing this prediction for last many decades but Pakistan is still here. Good luck Khalistan movement

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Hamed

Sep 18, 2022 10:11pm

How much interest pays Pakistan?

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Pakistani1

Sep 18, 2022 10:26pm

Just wondering why did Saudi Arabia become so anti PTI and are welcoming PMLN?

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ENGR Hamid Shafiq

Sep 18, 2022 10:27pm

Long live MBS Long live kingdom of Saudi Arabia

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Pak Patriot

Sep 18, 2022 10:28pm

Habitual beggars, for the last 70 years, world record. Money is then Looted by Politician Criminals.

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Babu-beeree

Sep 18, 2022 10:28pm

This is no way to run a country

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RockOn

Sep 18, 2022 10:28pm

Great

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MOAZ

Sep 18, 2022 10:33pm

So they are just going to not to ask for the return for another year. But where will Pakistan get the remaining deficit for the year fulfilled from?

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Shahid

Sep 18, 2022 11:38pm

How long more will we celeberate loans and deposits? May be until we declare us bankrupt?

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S. Nasheed Ahmed

Sep 18, 2022 11:51pm

IKN is much better at begging for money.

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Amaad Lone

Sep 18, 2022 11:54pm

@Bilal Mustafa Kaifi , this money remains with the state bank as reserves, its allows Pakistan to use its down dollars for imports and debt servicing. Its a loan.

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S. Nasheed Ahmed

Sep 18, 2022 11:56pm

The nation has become so accustomed to begging for money in the last 13 years of Democracy that now they don't even care. They don't even feel ashamed. They feel happy that they have a leader like IKN who is good at begging for money. (This is my personal experience with conversations with ordinary people.)

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Jacob

Sep 18, 2022 11:58pm

It is not an aid. Is it interest free?

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S. Nasheed Ahmed

Sep 19, 2022 12:09am

@bhaRAT©, No. You forget that we have already availed IMF loans of US$ 25 Billion in the last 13 years of Democracy. So it's actually Minus US$ 28 Billion. Further, Chinese / CPEC loans are very secret & completely unknown & unreported :- we shall only find out much later when the s**t hits the ceiling - i.e. when we have long crossed past the SL level.

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Sane

Sep 19, 2022 12:10am

Shahbaz shareef you r star Allhumdulilah

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S. Nasheed Ahmed

Sep 19, 2022 12:18am

@Asma, You are so unfair. You are stopping him just when he is traveling to London to shop for properties. Flood Relief donations have just arrived, so he could not have traveled earlier.

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Hamid Faisal

Sep 19, 2022 12:43am

Strong and special relationship between KSA and Pakistan for $3b deposit for one more year. Isn't that STRANGE to be said by State Bank of Pakistan? Our beloved country is already getting oil products on deferred payment since many decades from KSA. Shouldn't such need be idealized by getting more jobs, more trade etc. etc.?

Recommend 0

Sep 19, 2022 01:11am

@Justice, they are renewing deposit because the $3B doesn't matter to them. They are under no illusions that they'll be paid back the principal, let alone the interest.

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Shakeel badayuni

Sep 19, 2022 01:48am

This is Indian oil purchase payment coming to Pakistan via Saudi. Saudi had to give their highest award to Modi for continued purchase else India could buy all oil from Russia, Venezuela and Iraq . Pakistan should also give their highest award else india will reduce Saudi purchase

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Harry

Sep 19, 2022 02:37am

@Bilal Mustafa Kaifi , They are not giving money. They gave in past and it was due to give back in December and now they will ask for it back after one year. And probably more interest

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Hassi

Sep 19, 2022 03:57am

@Asma, it's about forex reserves that prevents rupee from devalue and it will remain to improve fiscal policy in better position but will not be utilised so far.

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Ifti Malik

Sep 19, 2022 03:58am

Thanks to the Saudi Arabian goverment for their continued support in various ways, over many decades .

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Zia U Ahmed

Sep 19, 2022 04:16am

Unless I am wrong, Saudis derive profit from these deposits.

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Suchbaath

Sep 19, 2022 04:33am

@Nadeem Sheikh, It is just a current deposit rollover collecting interest to keep Pakistan Foreign Exchange reserves level high. It is NOT Saudi investment in businesses.

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Pathanoo

Sep 19, 2022 04:58am

The end is defined and clear which is Bankruptcy. It's only a question of when, not if. Only a complete change of thinking and joint efforts by ALL to try to stand on it's own feet will save the country from the inevitable disaster.

Recommend 0

Sep 19, 2022 05:25am

Lip service. He got nothing

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Fastrack

Sep 19, 2022 05:35am

With it's never ending bailout demand, one day Pakistan will bankrupt KSA and UAE

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Sonam

Sep 19, 2022 05:55am

This is A+ foreign policy. Proud of Pakistan.

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A Shah

Sep 19, 2022 06:04am

Anyone who gives money to Pakistan becomes iron brother

Recommend 0

Sep 19, 2022 06:16am

No New loan but allow to revive 3 Billion dollar loan for one more year with interest

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Jalal

Sep 19, 2022 08:10am

This is not money that can be used for any real purpose and it really is more paper value at an interest so that we can borrow from overseas lenders . This is part goodwill part risk free income for the Saudis .

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EEsan

Sep 19, 2022 08:16am

Over the past 75 years, in an effort to maintain Military parity with India, Pakistan’s elite resorted to borrowed growth and fighting wars for other countries. Sure, you got money, but the corruption and greed for more money without any exports or industrial growth and lack of education in the masses, Pakistan started borrowing more loans. Now it is time to re-pay and you have no way to generate money. Default and bankruptcy coming soon...sorry!

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Nadeem Sheikh

Sep 19, 2022 09:22am

@Suchbaath , Where did I say it is investment in business

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Ema

Sep 19, 2022 10:42am

This is a big loan and it indicates that how strong ties both enjoy and Saudi Arabia willingness to help Pakistan

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Lia

Sep 19, 2022 10:43am

Saudi Arabia has always stood next to Pakistan though there are some rumors by people who aim to weaken the ties between the countries.

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S. Nasheed Ahmed

Sep 19, 2022 11:40am

@Sonam, Begging for money is not A+ Foreign Policy. It's shamelessness.

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S. Nasheed Ahmed

Sep 19, 2022 11:52am

Parliamentarians & Bureaucrats imported Luxury Cars because they could well afford it. But, in the process, they drove down the Exchange Rate, and thereby drove up Inflation, bringing the nation to starvation.

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