Islamabad: Sources quote that in the last weeks, the Saudi government deposited around 1 billion dollars in the Pakistani development funds, which has increased the reserves of State Bank to 4 billion dollars. This is the first time many years that the state bank reserves have become equal to the commercial bank reserves.
The dollar as a result has decreased to around Rs 103. Sources further state that more Saudi funds are expected which will further reduce the rate of dollar. The officials of the State Bank of Pakistan and ministry of treasury have suspiciously been quite about the sudden increase in the dollar reserves and have declined to comment on this issue.
The Pakistani government has been busy in talks with the Saudi government since the past few months and some rumours are circulating about the possibilities of the agreement that may have materialized between the governments. Some say that the Saudi government has agreed to financially help Pakistan in return for their support in the defence sector.
In the wake of the changing political situation of the middle-east, Saudi government is looking forward for an ally in the defence sector. This is the first instance, when the Saudi government has entered into an agreement with Pakistan without the consent of America.