Friday, December 05 2025

Saudi Arabia extends $3bn deposit with Pakistan amid economic strain
Saudi Arabia has extended the maturity of its $3 billion deposit placed with the State Bank of Pakistan (SBP) for another year, continuing a financial lifeline that has helped bolster the country's foreign exchange reserves amid ongoing liquidity challenges. The extension, made through the Saudi Fund for Development (SFD), maintains a facility that has been in place since 2021 and rolled over repeatedly in support of Pakistan's macroeconomic stability. The deposit, originally due to mature on December 8, 2025, will now remain parked with SBP until December 2026. Officials said the extension reflects Riyadh's continued commitment to supporting Pakistan's economic foundation, helping strengthen reserve buffers and enabling the country to meet key International Monetary Fund (IMF) benchmarks.
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Japan’s investment in Pakistan crosses USD1.3bn mark: envoy
Japan’s investment in Pakistan has crossed USD 1.3 billion, the Japanese Ambassador Akamatsu Shuichi said on Tuesday, highlighting over seven decades of diplomatic and economic relations between the two nations. Speaking at the Annual Gala Dinner of the Pakistan-Japan Business Forum (PJBF) held at local hotel, the Ambassador said that ties between the two countries date back more than 70 years, beginning with the early cotton trade. Japanese investment, he said, now covers sectors including automobiles, energy, textiles, daily products and IT. Former Chairman PJBF Kalim Farooqui was also present on this occasion. Addressing the gathering, he praised the role of PJBF in promoting business linkages and serving as an economic bridge between the two countries for over two decades. He said the Forum is also a key stakeholder in the Japan-Pakistan Government Business Joint Dialogue, scheduled to take place in Tokyo from January 15–16 next year.
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New values of polyester partially oriented yarn issued
The Directorate General of Customs Valuation, Karachi, has issued new customs values of the polyester partially oriented yarn being imported from China for the assessment of duty/taxes. According to a ruling (2026) issued by the directorate on Thursday, a representation was received from the Pakistan Yarn Manufacturers Association (PYMA), wherein it was contended that the values of the said item needed to be aligned with prevailing international price trends. In view of the changing market conditions and to ensure fair and updated valuation, this Directorate General initiated an exercise for the fresh determination of customs values of Polyester Partially Oriented Yarn under Section 25A of the Customs Act, 1969. Accordingly, meeting notices were issued to all relevant stakeholders for consultation and submission of supporting documents.
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Govt decides to regulate used car imports
After months of serious pressure by local automobile manufacturers, the government has decided to regulate used car imports as the local auto industry sounded alarms over 120,000 imported vehicles within a year, which had pushed the local industry to the verge of collapse. The decision was taken here on Thursday during a high-level meeting chaired by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, with the delegation of the auto industry. The participants of the meeting were informed that the Prime Minister of Pakistan has directed all the relevant quarters, including the Ministry of Industries and Production, to devise a new framework on the subject of used car imports to protect local manufacturing units. According to the officials of the Engineering Development Board (EDB), the share of used car imports in Pakistan has jumped from 7.5 percent in 2020-23 to 20 percent in 2025, which is posing a serious threat to local manufacturing, investment, and employment.
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Saudi Arabia ‘extends term’ for USD3bn deposit
In a major development on economic front, Kingdom of Saudi Arabia (KSA) has extended term for USD3.0 billion deposit placed with Pakistan for another year. According to State Bank of Pakistan (SBP) the Saudi Fund for Development (SFD) on behalf of the KSA has extended the term for the deposit of USD3.0 billion maturing on 08 December 2025 for additional one year. The said amount has been placed with the State Bank on behalf of Islamic Republic of Pakistan. “The extension of the term of the deposit is 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 SBP said.
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