The State Bank of Pakistan on Saturday received $3 billion deposit from Saudi Arabia aimed at lending support to the foreign exchange reserves.

“Good news, $3 billion Saudi deposit received by SBP,” stated Adviser to Prime Minister on Finance Shaukat Tarin in a tweet on Saturday. “I want to thank Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture.”

The deposit is expected to lend support to the local currency and help bolster foreign exchange reserves of the country. According to market rumours, rupee is expected to recover partially as the deposit will support market sentiment.

On October 27, 2021, Saudi Arabia agreed to provide a $4.2 billion lifeline to Pakistan on an annual basis in the shape of cash assistance and oil on deferred payments.

Under the deal, the Middle Eastern nation announced to deposit $3 billion cash in the State Bank of Pakistan and also provide $1.2 billion worth of oil on deferred payments.

In a statement on Saturday, Ismail Iqbal Securities Head of Research Fahad Rauf cherished $3 billion received from Saudi Arabia and added that it should give some stability to rupee.

“Pakistan would issue a Sukuk worth $1 billion soon,” he said. “Receipt of another $1 billion from the International Monetary Fund in expected in January.”