The State Bank of Pakistan (SBP) said on Thursday that Saudi Arabia has agreed to extend the $3 billion deposit held with the bank for another year.

It said the Saudi Fund for Development (SFD), on behalf of the Kingdom of Saudi Arabia, has rolled over the deposit, which was set to mature on Monday.

“The extension of the term of the deposit is a continuation of the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan, which will help in strengthening the foreign exchange reserves of Pakistan and contribute to the country’s economic growth and development,” the bank said.

The $3bn deposit was initially agreed upon in 2021 and rolled over in 2022, 2023 and 2024.

Last week, the SBP said its forei­­gn exchange reserves rose by a meagre $9 million to $14.560bn during the week ending Nov 21.

However, the country’s total liquid foreign reserves decreased to $19.605bn from the previous week’s $19.738bn due to a decline in commercial banks’ foreign exchange holdings, which fell from $5.186bn to $5.044bn in the latest week.