Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar announced on Tuesday that Saudi Arabia had deposited $2 billion with the State Bank of Pakistan (SBP).
This deposit has significantly increased Pakistan’s foreign exchange reserves to approximately $11.7 billion.
Addressing a news conference, Senator Dar expressed gratitude for the Saudi leadership, particularly King Salman and Crown Prince Muhammad Bin Salman on behalf of Prime Minister Muhammad Shehbaz Sharif, Chief of Army Staff Asim Munir, and the entire nation for their support.
He emphasized the strong bond between Pakistan and Saudi Arabia, highlighting Saudi Arabia’s consistent supportive role as a brother to Pakistan in various circumstances.
The minister stated that the deposit would directly contribute to the country’s foreign exchange reserves, which stood at around $9.7 billion as of the previous Friday. However, the new position of the exchange reserves would be reflected from the upcoming Friday.
Furthermore, Senator Dar mentioned that more positive developments were expected to follow, leading the Pakistani economy towards growth.
He emphasized that the efforts of the current government had already stabilized the country’s economy.
Meanwhile, Prime Minister Shehbaz Sharif also extended his “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 and Prime Minister His Royal Highness Mohammed bin Salman for ensuring this financial support to Pakistan,” he wrote on Twitter.
The prime minister hoped that the deposit would strengthen Pakistan’s foreign exchange reserves and reflected the growing confidence of the brotherly countries and the international community in the country’s economic turnaround.
“We remain committed to making all necessary efforts to improve Pakistan’s economy,” he said.
He lauded Finance Minister Senator Ishaq Dar and army chief General Syed Asim Munir for the valuable efforts they made in this regard.
It is worth noting that Fitch Ratings, a renowned rating agency, upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘CCC-‘on Monday.
This upgrade indicates a positive development towards the betterment of Pakistan’s economy. The rating agency identified improvements in easing external financing risks as key indicators for this positive rating.
