In a move strengthening economic ties between Pakistan and Saudi Arabia, Saudi Arabia has pledged to increase its deposits in the State Bank of Pakistan (SBP) by $2 billion, reaching a total of $5 billion. This news was revealed by Mohammad AlQahtani, CEO of Saudi Arabia Holding Co., in a recent LinkedIn post.
The decision follows a meeting between Pakistani Prime Minister Muhammad Shehbaz Sharif and Saudi Crown Prince Mohammed Bin Salman on Monday.
The $2 billion deposit hike comes alongside plans for significant investments in Pakistan’s infrastructure. AlQahtani mentioned potential investments in a new oil refinery and copper mines within the country.
These initiatives are part of a previously discussed $21 billion investment package from Saudi Arabia. The broader plan includes a $7 billion copper mine and a $14 billion oil refinery project.
The increased deposits and planned investments are seen as a major boost for the Pakistani economy. They are expected to create new jobs, address foreign currency shortages, and bolster economic cooperation between the two nations.
AlQahtani acknowledged Pakistan’s current economic challenges, including high inflation. These investments aim to provide much-needed support and propel economic growth and job creation in the country.
Pakistan and Saudi Arabia have a long history of partnership, with Saudi Arabia offering significant financial and political aid over the years. These new investments solidify the ongoing collaboration and mutual support between the two nations, signifying a promising future for economic development and cooperation.