Saudi Arabia extends $3bn support for Pakistan

Pakistan and Saudi Arabia have signed an agreement to extend a $3 billion deposit placed with the central bank, providing timely financial support to Islamabad amid external economic pressures.

According to the Ministry of Finance Pakistan, the agreement was signed between the Saudi Fund for Development (SFD) and the State Bank of Pakistan (SBP). The extension relates to the maturity period of the existing $3 billion deposit held by the SBP.

The signing ceremony took place in Washington, D.C. on the sidelines of the World Bank-IMF Spring Meetings 2026. The agreement was formalised by SBP Governor Jameel Ahmed and SFD CEO Sultan bin Abdulrahman Al-Marshad, in the presence of Finance Minister Muhammad Aurangzeb.

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Earlier in the week, Saudi Arabia had also pledged an additional $3 billion deposit and extended its existing $5 billion facility for another three years, reflecting strong economic ties between the two countries. Officials said the move would help support Pakistan’s external sector stability and strengthen its foreign exchange reserves.

The development comes at a critical time for Pakistan’s economy, which faces mounting pressure due to rising global oil prices and regional geopolitical tensions. The country is also set to repay a $3.5 billion loan to the UAE, adding strain on its reserves.

As of late March, Pakistan’s foreign exchange reserves stood at approximately $16.4 billion, covering nearly three months of imports. However, analysts warn that external financing risks remain significant.

The extension underscores Saudi Arabia’s continued financial backing and highlights ongoing efforts to stabilise Pakistan’s economy under reform programmes supported by the International Monetary Fund.