The Economic Affairs Ministry reported that Pakistan and the Kingdom of Saudi Arabia signed a contract on Thursday to finance oil derivatives worth $1 billion.

The news reports that Saudi Arabia is stepping up its intentions to expand investment and deposits in cash-strapped Pakistan, which is dealing with a deteriorating currency crisis, coincide with the development.

The agreement was signed by Sultan bin Abdulrahman Al-Murshed, CEO of the Saudi Fund for Development (SFD), and Economic Affairs Secretary Dr. Kazem Niaz, according to an official release.

Speaking at the event, Dr. Niaz disclosed that the arrangement was an extension of two earlier contracts for the financing of oil derivatives in Pakistan that were signed in 2019 and 2021 and were worth a combined $4.44 billion.

Speaking at the event, Dr. Niaz disclosed that the arrangement was an extension of two earlier contracts for the financing of oil derivatives in Pakistan that were signed in 2019 and 2021 and were worth a combined $4.44 billion.

He said that since its founding, the SFD had funded more than 40 projects and programmes totaling roughly $1.4 billion in various sectors of development.

All of the programmes, he continued, were created to aid the nation in achieving its objectives for sustainable development and creating a bright future.

The deal, according to SFD CEO, emphasised the Kingdom of Saudi Arabia's dedication to continuing to support the amiable Islamic Republic of Pakistan.

Saudi Arabia considers raising its deposit with Pakistan

Saudi Arabia is considering increasing its deposit in the State Bank of Pakistan (SBP) from $3 billion to $5 billion, showing that Islamabad's attempts to stabilise the nation's foreign exchange reserves with their assistance are beginning to bear fruit.

Crown Prince Mohammad Bin Salman reportedly ordered his finance officials to research raising the Pakistan deposit by $2 billion earlier this week, according to Saudi media.

The new development followed the meeting between the Saudi crown prince and General Asim Munir, the chief of army staff, who was in the country for the first time on official business.

The SFD extended its term last month for the $3 billion SBP deposit that was due to mature on December 5.

In order to increase its foreign exchange reserves, the SBP and the SFD agreed to a $3 billion transfer into the central bank's account in November 2022.