Saudi Arabia agrees to rollover $3bn deposits in Pakistan

Saudi Arabia agrees to rollover $3bn deposits in Pakistan. Kingdom of Saudi Arabia has agreed to roll over its $3bn deposits in Pakistan which will help to revive the International Monetary Fund (IMF) loan.

Saudi Arabia extended support multiple times to Pakistan. It pledged $4.2 billion in assistance to Pakistan when the former prime minister, Imran Khan, visited the kingdom. That included a deposit of $3 billion with the State Bank of Pakistan to help shore up its reserves and a facility to finance oil derivatives trade worth $1.2 billion during the year.

Earlier in the month, Chief of Army Staff (COAS) General Qamar Javed Bajwa spoke with the authorities of the United Arab Emirates and Saudi Arabia to discuss the IMF program.

The extended fund facility worth $1.2 billion with the IMF was discussed with the friendly countries, including the upcoming executive board meeting of the IMF which is expected to ratify the loan program.

Read more: Saudi crown prince confers Order of King Abdulaziz on COAS Gen Bajwa

Before that, Army Chief also called US Deputy Secretary of State seeking help so Islamabad could secure an early dispersal of $1.2 billion in funds under an IMF program.

Pakistan–Saudi Arabia relations, or Pakistani-Saudi Arabian relations, refers to the bilateral relations between Pakistan and Saudi Arabia. Relations have been historically close and friendly, frequently described by analysts as constituting a special relationship.

Despite Pakistan’s growing relationship with Iran (see Iran-Saudi Arabia proxy conflict) and Saudi Arabia’s growing relationship with India (see Indo-Pakistani wars and conflicts), Pakistan has sometimes been dubbed as “Saudi Arabia’s closest Muslim ally.”

Pakistan has, in line with its pan-Islamic ideology, assumed the role of a guardian of Saudi Arabia against any external or internal threat.