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Saudi Arabia deposits $2bn in Pakistan’s central bank  

Reuters/Faisal Mahmood
Pakistan's finance minister Ishaq Dar. The country has received a substantial deposit from Saudi Arabia

Saudi Arabia has deposited $2 billion in the State Bank of Pakistan, the South Asian country’s finance minister said on Tuesday.

Last month the International Monetary Fund (IMF) reached a staff-level pact with Pakistan on a $3 billion stand-by arrangement. The deal is, however, subject to approval by the IMF board this month.

The $3 billion funding, spread over nine months, was higher than expected for Pakistan.

In April Pakistan’s The News media outlet said the country was likely to sign a deal for additional deposits of $2 billion with the Saudi Fund for Development (SFD) after Eid Al-Fitr.

Saudi Arabia had previously confirmed bilateral assistance, which the IMF has accepted. In addition, it has already rolled over $3 billion in deposits for one year, which matured on December 5, 2022.  

The UAE has already confirmed financial support of $1 billion to Pakistan, which was crucial to remove a key hurdle in securing the IMF bailout.