ISLAMABAD — Prime Minister of Pakistan Shehbaz Sharif praised a report issued by the Saudi Fund for Development (SFD) announcing the rollover of a deposit worth $3 billion in favor of the State Bank of Pakistan (SBP).

In a press statement, Sharif lauded the close ties binding the two friendly countries. He confirmed that renewing the deposit would contribute to improving the economic situation of his country, 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.

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. — SG