Fresh financial backing strengthens reserves
Saudi Arabia on Thursday announced a fresh $3 billion deposit to the State Bank of Pakistan, reinforcing its financial support for Pakistan. The Saudi Press Agency confirmed that the assistance came under directives from King Salman bin Abdulaziz Al Saud and Mohammed bin Salman.
Moreover, the package includes an extension of the maturity period for the kingdom’s existing $5 billion deposit with the State Bank of Pakistan. Officials stated that the move aims to strengthen Pakistan’s economy and enhance its resilience amid global financial challenges.
Earlier, Finance Minister Muhammad Aurangzeb had indicated that Riyadh committed additional financial assistance while rolling over previous deposits. In addition, the State Bank recently confirmed receiving $2 billion from Saudi Arabia on April 15, 2026, further boosting reserves.
Economic pressures and ongoing commitments
Meanwhile, Pakistan continues to face external financial pressures. The country must repay $3.5 billion to the United Arab Emirates this month, placing strain on foreign exchange reserves, which stood at approximately $16.4 billion as of late March.
However, under its $7 billion programme with the International Monetary Fund, Pakistan targets reserves exceeding $18 billion by June. Therefore, continued external support remains crucial for meeting these benchmarks.
Furthermore, Saudi Arabia has consistently supported Pakistan during economic challenges. For instance, Riyadh provided a $6 billion package in 2018, including deposits and deferred oil payments.
At the same time, Pakistan has maintained debt repayments. Recently, it cleared $1.43 billion in external obligations, including a $1.3 billion Eurobond and related coupon payments, reflecting improved fiscal discipline and capacity.
