Saudi Arabia has once again extended the $3 billion deposit it holds with Pakistan for another year. The funds, originally set to mature today, are managed by the State Bank of Pakistan (SBP). The extension aims to provide continued financial stability amid Pakistan’s ongoing economic challenges.
The deposit comes from the Saudi Development Fund, which initially provided the $3 billion in 2021. Over the years, this fund has helped Pakistan maintain its foreign reserves and manage balance-of-payment pressures. With the extension, the deposit will now remain with the SBP until late 2026.
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Officials said the deposit will help Pakistan meet import bills, service debt, and strengthen overall liquidity. It also reinforces financial cooperation between the two countries. Economists say such deposits boost investor confidence and provide a buffer against currency volatility.
Sources highlighted that the arrangement allows Pakistan flexibility to manage urgent financial needs without seeking additional borrowing from international markets. The deposit has become an important component of Pakistan’s foreign exchange reserves. Analysts see this as a signal of trust and strong bilateral ties between Islamabad and Riyadh.
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The extension reflects ongoing confidence by Saudi Arabia in Pakistan’s economic policies. Authorities said the move demonstrates support for Pakistan’s financial stability. The deposit is expected to remain a crucial source of short-term economic support in the coming year.