KARACHI — Saudi Arabia on Friday extended the term of a $3 billion deposit it made to Pakistan's foreign reserves, the Saudi Press Agency (SPA) reported.

Saudi Arabia deposited the money in Pakistan's central bank late last year as a loan to shore up the cash-strapped country's reserves.

In the implementation of instructions by Custodian of the Two Holy Mosques King Salman and the Crown Prince, the Saudi Fund for Development (SFD) has confirmed the rollover of the deposit worth $3 billion placed with the State Bank of Pakistan (SBP), SPA said.

The Pakistan central bank's reserves stood at $7.5 billion as of Nov. 25 this year. Too low to cover more than a month of imports, the reserves together with a widening current account deficit have threatened a balance of payment crisis for the South Asian economy, which has to make another $1 billion bond payment next week.

The extension of the deposit comes in continuation of the support extended by the Saudi government to Pakistan's foreign reserves to confront the economic repercussions in the aftermath of Covid-19, SPA said.

The deposit was signed in November 2021, and maturing on December 03, 2022. — SG