Pakistan’s external position strengthened further as it received $1 billion from Saudi Arabia, completing another tranche of a larger financial support package and offering timely relief to the country’s foreign exchange reserves.
The State Bank of Pakistan confirmed that the amount has been received from Saudi Arabia’s Ministry of Finance, describing it as the second installment of the $3 billion deposit pledged by Riyadh to support Pakistan’s economy.
According to the central bank, $2 billion had already been credited on April 15, bringing the total inflows under this arrangement to $3 billion. The deposit is part of Saudi Arabia’s broader financial backing aimed at stabilizing Pakistan’s balance of payments and strengthening reserve buffers amid ongoing economic challenges.
The inflow comes at a critical juncture when Pakistan is managing external repayment pressures and seeking to maintain reserve adequacy. The latest tranche is expected to ease short-term liquidity concerns and support the country’s exchange rate stability.
Meanwhile, Finance Minister Muhammad Aurangzeb recently indicated that an additional $5 billion Saudi deposit is also likely to be extended for three years instead of being rolled over annually, with its maturity expected to shift to 2028. The move, if finalized, would significantly reduce refinancing risks and provide longer-term visibility on external financing.
On the repayment front, Pakistan has already returned $2 billion to the United Arab Emirates last week along with $450 million in interest, while another $1 billion payment to the UAE is due on April 23.
The latest Saudi inflows, coupled with expected extensions in existing deposits, reflect continued financial support from key regional partners, helping Pakistan navigate its external financing needs while maintaining macroeconomic stability.
