Pakistan’s foreign exchange position improved with the inflow of another $1 billion from Saudi Arabia, marking the second tranche of a $3 billion deposit and providing timely support to the country’s external account.
The State Bank of Pakistan confirmed the receipt of funds from the Saudi Ministry of Finance, stating that the amount is part of the financial package pledged by Riyadh to help stabilize Pakistan’s economy. With this latest inflow, the total amount received under the arrangement has reached $3 billion, following an earlier $2 billion disbursement on April 15.
The central bank noted that the deposits are aimed at strengthening Pakistan’s foreign exchange reserves and ensuring stability in the external sector at a time when the country continues to face repayment pressures and tight liquidity conditions.
The development comes amid ongoing efforts by the government to secure external financing and extend the maturity of friendly deposits. Finance Minister Muhammad Aurangzeb recently indicated that a separate $5 billion Saudi deposit is expected to be extended for three years instead of the existing annual rollover arrangement, with its maturity likely to shift to 2028.
On the repayment side, Pakistan has recently cleared $2 billion in deposits to the United Arab Emirates along with $450 million in interest. Another $1 billion repayment to the UAE is scheduled later this month, reflecting continued pressure on the country’s external finances despite inflows from friendly nations.
The continued financial backing from Saudi Arabia is being seen as critical for maintaining reserve adequacy and supporting macroeconomic stability as Pakistan navigates a challenging economic environment.
