In support of Pakistan’s efforts to bolster its foreign exchange reserves, Saudi Arabia’s Crown Prince Mohammad Bin Salman gave the go-ahead for a $10 billion deposit raise.
Crown Prince Mohammad Bin Salman reportedly ordered the SDF to research raising the deposit to $5 billion by December 2, 2022, according to the Saudi Press Agency (SPA), reiterating the kingdom’s support for Pakistan’s people and economy.
On August 25, 2022, the Saudi ruler announced that he has ordered research to expand Riyadh’s investments in Pakistan to $10 billion.
Prince Mohammad Bin Salman and Chief of Army Staff General Asim Munir made the declaration the day after they met.
Last month, Saudi Fund for Development (SFD) renewed the $3 billion deposit it made with the State Bank of Pakistan.
The SBP and the SFD struck a contract in November 2022. The contract was for the SBP to receive $3 billion. The purpose of this contract was to increase the foreign exchange reserves of SBP
Pakistan now has $4.5 billion in foreign exchange reserves, enough to cover imports for three weeks.
Islamabad is making an effort to restart the IMF’s stagnant lending program.
Alongside the donors’ conference on Monday, a Pakistani delegation met with IMF representatives in Geneva.
Finance Minister Muhammad Ishaq Dar and IMF representatives reportedly spoke about how climate change could affect local businesses.
It stated that “the finance minister promised to complete the Fund programme.”
Due to the lender’s failure to deliver the $1.1 billion due in November, Pakistan only has enough foreign exchange reserves. This lack of reserves will only allow Pakistan to fund one month’s worth of imports.