ISLAMABAD: Pakistan and Saudi Arabia today signed a formal agreement pertaining to $3 billion Saudi cash assistance, which will be kept in SBP account as deposit for a year. Pakistan government will pay a four percent annual markup on this Saudi assistance.
Pakistan Stock Exchange (PSX) benchmark 100-index gained 1200 points today (Nov 29) in the backdrop of this bilateral agreement that will lead to disbursement of Saudi loan.
The PSX-100 index surged to 45,416 points on Monday (Nov 29), ignoring risks of Omicron.
Interestingly, State Bank of Pakistan shared this agreement with media round 4:15pm on Monday, after closing of stock market, but the PSX started with bullish sentiment and closed with 1200 points gain in the wake of Pak-Saudi loan deal.
A deposit agreement between the Kingdom of Saudi Arabia, represented by the Saudi Fund for Development (SFD), and the Government of the Islamic Republic of Pakistan, represented by the State Bank of Pakistan (SBP), has been signed today by the Chief Executive Officer of SFD, H.E. Sultan Bin AbdulRahman Al-Marshad and the Governor SBP, Dr. Reza Baqir at the State Bank of Pakistan in Karachi, Pakistan.
Under this deposit agreement, SFD shall place a deposit of USD 3.0 billion with SBP. The deposit amount under the agreement shall become part of SBP’s Foreign Exchange Reserves. It will help support Pakistan’s foreign currency reserves and contribute towards resolving the adverse effects of the COVID-19 pandemic.
The deposit agreement reflects the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and will further augment the economic ties between the two brotherly countries.
