KARACHI: Saudi Arabia has rolled over repayment of its deposits worth $5 billion for three years. Governor State Bank of Pakistan Governor Jameel Ahmed revealed this today.
He told reporters that the rollover would reduce Pakistan’s immediate external debt repayment burden and strengthen the foreign exchange reserves.
Pakistan currently holds $8 billion in deposits from Saudi Arabia. The total includes a separate $3 billion deposit that Saudi Arabia rolled over in April this year.
Consequently, Pakistan’s external financing requirement for the current fiscal year has declined to $21.5 billion.
Meanwhile, the State Bank reported that interest payments on external debt have decreased by nearly $500 million.
The central bank also confirmed that Pakistan repaid $2.2 billion in external loans during July.
Furthermore, officials expect China to refinance a $1.3 billion commercial loan next month.
The refinancing would further support Pakistan’s external financing position and help maintain foreign exchange stability.
Earlier, the State Bank disclosed that it purchased $9 billion from the open market during fiscal year 2025-26.
The purchases aimed to strengthen the country’s foreign exchange reserves amid ongoing external financing challenges.
Moreover, the central bank has set a target of increasing foreign exchange reserves to $20.2 billion by December 2026.
Officials said achieving that goal will depend on stronger external inflows, continued debt rollovers and strategic market interventions.
The latest Saudi rollover provides additional financial support as Pakistan continues efforts to strengthen its external sector and improve reserve levels.
Authorities expect sustained international assistance and prudent monetary management to play an important role in maintaining economic stability during the current fiscal year.
