SBP foreign exchange reserves rise by 16.6% to $18.66bn on back of Saudi fund

• Foreign currency reserves rise by $2,648m on the back of a $3bn deposit by the Saudi Fund for Development.
• Overall liquid foreign currency reserves stand at $25,150.7 million.
• Net reserves by banks amount to $6,492.5 million.

KARACHI: State Bank of Pakistan’s (SBP) foreign exchange reserves increased by 16.6% on a weekly basis, data released by the central bank showed on Thursday.

On December 3, the foreign currency reserves held by the central bank were recorded at $18,658.2 million, up by $2,648 million compared with $16,010.3 million on November 26.

“After accounting for external debt and other official payments, SBP reserves increased by $2.648 billion,” it said, adding that the increase in reserves came primarily on the back of a $3 billion deposit by the Saudi Fund for Development.

Meanwhile, overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $25,150.7 million. Net reserves held by banks amounted to $6,492.5 million.

Last week, Pakistan received a much-awaited $3 billion deposit from Saudi Fund for Development.

Taking to official Twitter handle, Adviser to Prime Minister on Finance and Revenue Shaukat Tarin had announced: “Good news, $3 billion Saudi deposit received by SBP.”

On November 29, the central bank of Pakistan and the Saudi Fund for Development signed a deposit agreement for funds worth $3 billion.

According to a joint statement, under this deposit agreement, SFD shall park $3 billion in the SBP. “The deposit amount under the agreement shall become part of SBP’s foreign exchange reserves,” it had said.

The central bank had stated that the deposit would help support Pakistan’s foreign currency reserves and “contribute towards resolving the adverse effects of the COVID-19 pandemic.”

The deposit agreement was signed by SFD Chief Executive Officer H E Sultan Bin AbdulRahman Al-Marshad and the SBP Governor Dr Reza Baqir at the State Bank of Pakistan in Karachi.

On October 27, the Saudi Fund for Development agreed to deposit $3 billion in the SBP to help support its foreign reserves.

The fund had stated that an official directive was issued to supply $1.2 billion to finance Pakistan’s oil products trade during the year.