Saudi Arabia announced a big financial support for Pakistan and extended the $3 billion deposit it holds with the State Bank of Pakistan. The Saudi Development Fund originally placed the amount in Pakistan’s central bank in 2021 under a formal financial support arrangement. The deposit matured on Thursday, and Riyadh approved a fresh extension to maintain ongoing economic cooperation.
Officials confirmed that the extension provides essential support for Pakistan’s fragile foreign exchange reserves. They said the arrangement helps stabilise the balance of payments at a time of persistent financial pressure. Pakistan relies heavily on such deposits to meet external obligations and maintain confidence in its economic outlook. The renewal ensures that Islamabad avoids immediate repayment concerns during a period of tight liquidity.
Support Strengthens Foreign Reserves and Stability
Sources said the $3 billion deposit remains an important component of Pakistan’s overall foreign exchange reserves. They noted that the funds help reinforce the central bank’s capacity to manage external accounts. Officials added that the extension will support ongoing economic activities and prevent sudden disruptions in financial planning. The move also signals continued trust between the two countries during challenging global market conditions.
The central bank has managed the deposit since its arrival under the Saudi Development Fund’s financial support programme. Officials said Pakistan frequently engages with friendly countries to secure additional buffers for its external sector. They stressed that such support remains vital for sustaining stability in the country’s financial operations.
Riyadh Reaffirms Commitment Amid Economic Challenges
The latest extension demonstrates Saudi Arabia’s ongoing commitment to assisting Pakistan during a difficult economic period. Officials in Islamabad said the renewal sends a positive signal to international lenders and markets. They added that continued financial cooperation with Riyadh strengthens Pakistan’s position as it navigates external financing requirements.
Analysts said the extension will help Pakistan reduce short-term stress on its foreign payments. They believe the support may also facilitate ongoing discussions with other bilateral partners. They noted that Pakistan’s economy remains under pressure from high external debt and weak foreign inflows.
Officials acknowledged the challenges but expressed confidence that the extension will provide crucial short-term relief. They said Pakistan continues to pursue broader reforms to achieve sustainable economic stability.
