According to reliable sources, Pakistan has agreed to pay an annual profit of four per cent to Saudi Arabia on a deposit of $2 billion with the State Bank of Pakistan (SBP) for a duration of one year.
This decision was made to fulfill one of the prerequisites set by the International Monetary Fund (IMF), which demanded that Pakistan secure external funding of approximately $6 billion, according to Brecorder.
Additionally, the United Arab Emirates (UAE) has also confirmed to the IMF that it will deposit $1 billion with the State Bank of Pakistan.
On May 10, 2023, the Finance Division presented an additional agenda item to the Federal Cabinet, informing them that the Kingdom of Saudi Arabia, through its Ministry of Finance, had agreed to deposit $2 billion with the State Bank of Pakistan for a one-year period. The proposed annual profit rate was set at 4 per cent.
The draft Deposit Agreement, provided by the Saudi side, was sent to the Ministry of Law and Justice and the Office of the Attorney General for Pakistan for examination and clearance in accordance with the Cabinet’s decision on May 14, 2019.
Upon approval by the Federal Cabinet, the Finance Division of the Government of Pakistan will authorize the State Bank of Pakistan to proceed with the Deposit Agreement. The Ministry of Law and Justice has given its clearance to the draft
Agreement, subject to the completion of all necessary formalities, while the Federal Board of Revenue (FBR) has granted its approval for tax exemption.
