ISLAMABAD – As Pakistan neared deadline to repay crucial $3 billion deposit. Saudi Arabia extended deposit for another year, allowing State Bank of Pakistan to retain funds first provided in 2021. The move prevents pressure on Pakistan’s foreign reserves and offers much-needed relief to its fragile economy, showing continued Saudi support during challenging times.
In dramatic boost to Pakistan’s struggling economy, Kingdom once again stepped in as a financial rescuer, extending its massive $3 billion deposit with the State Bank of Pakistan for another full year.
This crucial deposit comes from Saudi Development Fund and has been cornerstone of Pakistan’s foreign exchange reserves since 2021. With economic pressures mounting and repayment deadlines looming, extension arrives like lifeline at the eleventh hour.
Officials confirm the decision will shield Pakistan from immediate financial shock, preventing a sudden outflow of funds that could have shaken the balance of payments and threatened ongoing economic activities.
Experts say the renewal “reinforces Saudi Arabia’s unwavering commitment” to stand by Pakistan during one of its toughest financial phases. The funds remain in the SBP’s control, and the extension signals strong economic diplomacy and regional support amid persistent challenges.
