reserves
ISLAMABAD: Saudi Arabia has once again extended the term of a $3 billiondeposit placed with the State Bank of Pakistan, providing criticalbreathing space to the country’s dwindling foreign exchange reserves,official sources confirmed on Wednesday.
The Saudi Fund for Development (SFD) formally communicated the rollover ofthe deposit for an additional period of one year, effective immediatelyupon the expiry of the existing arrangement. The facility, initiallyprovided in 2021 following a bilateral agreement, was due to mature thisweek but will now remain available until December 2026.
The $3 billion deposit forms part of a larger $5 billion support packageannounced by Riyadh during the visit of then-Prime Minister Imran Khan tothe Kingdom in 2021. While $2 billion was extended as an oil facility ondeferred payments, the $3 billion cash deposit has been repeatedly rolledover since November 2021, reflecting the enduring strategic and fraternalties between Islamabad and Riyadh.
Finance Ministry officials described the extension as a testament to theconfidence reposed by Saudi Arabia in Pakistan’s economic reform programmeunder the ongoing International Monetary Fund arrangement. The rollovercomes at a particularly crucial juncture as Pakistan continues to stabiliseits external account following the successful completion of a $3 billionStand-By Arrangement with the IMF earlier this year.
The deposit significantly bolsters Pakistan’s foreign exchange reserves,which stood at approximately $12.6 billion as of the last reported week,including the Saudi facility. Analysts noted that the timely extensionremoves immediate pressure on the rupee and helps maintain investorconfidence during negotiations for a larger, longer-term IMF programmeexpected to commence next year.
Saudi Arabia remains one of Pakistan’s most reliable economic partners,having extended similar support during previous balance-of-payments crisesin 2018-19 and 2021-22. The Kingdom is currently Pakistan’s second-largestsource of remittances and a major trading partner.
Prime Minister Shehbaz Sharif, who enjoys close personal relations with theSaudi leadership, has repeatedly acknowledged the Kingdom’s “brotherlyassistance” during difficult times. The latest rollover follows his recentvisit to Riyadh and consistent high-level engagements between the twocountries.
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Economic observers in Islamabad said the decision also reflects SaudiArabia’s interest in maintaining regional stability and supportingPakistan’s efforts to attract Gulf investment under the Special InvestmentFacilitation Council framework.
Source: https://www.sbp.org.pk/press/2025/Pr-Saudi-Deposit-4-Dec-2025.asp
Source: https://www.arabnews.com/node/2589471/pakistan
Tags: Saudi Arabia, Pakistan, State Bank, IMF, Foreign Reserves
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