Pakistan’s external financing position received a significant boost as the State Bank of Pakistan (SBP) confirmed the receipt of $1 billion from the Ministry of Finance of Saudi Arabia, completing the second tranche of a recently agreed $3 billion deposit arrangement.
In a statement issued on Tuesday, the central bank said the latest inflow was credited with a value date of April 20, 2026. This follows the earlier disbursement of $2 billion on April 15, bringing the total funds received under the agreement to the full $3 billion pledged by Riyadh.
The inflows come at a crucial time for Pakistan’s economy, helping shore up foreign exchange reserves and improve overall external liquidity. Analysts say such deposits are vital for maintaining macroeconomic stability, particularly as the country navigates ongoing fiscal and balance-of-payments pressures.
The development also coincides with Prime Minister Shehbaz Sharif’s recent official visit to Saudi Arabia, where he held high-level talks with Crown Prince Mohammed bin Salman in Jeddah. During the meeting, the premier expressed gratitude for the Kingdom’s consistent financial backing and reaffirmed Pakistan’s commitment to strengthening bilateral ties. He also conveyed solidarity with Saudi leadership amid evolving regional dynamics.
Earlier, Finance Minister Muhammad Aurangzeb had indicated that the Kingdom would extend additional financial assistance of $3 billion, with swift disbursement expected. He further revealed that Saudi Arabia had rolled over its existing $5 billion deposit with Pakistan, easing repayment pressure by removing the requirement for annual renewals.
The Saudi support has played a stabilising role in Pakistan’s financial outlook. Recently, Islamabad repaid $2 billion to the United Arab Emirates, funds that had been previously parked with the central bank as part of bilateral financial arrangements.
Saudi Arabia remains one of Pakistan’s most reliable economic partners, having extended multiple assistance packages over the years. Notably, in 2018, the Kingdom provided a $6 billion support package that included direct deposits and oil facility arrangements, helping Pakistan manage a period of acute economic stress.
