Saudi Arabia has extended the term of its $3 billion deposit placed with the State Bank of Pakistan (SBP) for another year. The announcement came through an official statement issued by the central bank on Tuesday.
The deposit was first placed with the SBP in 2021. It was set to mature on December 8, 2025, but has been rolled over several times. The latest extension shows continued financial support from Saudi Arabia as Pakistan works to stabilize its economic position.
According to the SBP, the funds are held on behalf of the Islamic Republic of Pakistan. The amount serves as an important buffer for the country’s foreign exchange reserves. Pakistan has been working to maintain adequate reserves while managing external financing needs.
The extension comes at a time when Pakistan continues to face economic pressure. The country’s balance of payments remains under strain due to rising external obligations and slower foreign inflows. The rollover of the deposit will help ease some of these pressures and support overall reserve stability.
Saudi Arabia has remained one of Pakistan’s key economic partners. The country has supported Pakistan through several financial packages, including deposits and deferred oil payment facilities. This continued engagement reflects a long-standing economic relationship between the two nations.
The latest decision is expected to boost investor confidence and strengthen Pakistan’s short-term financial outlook. Analysts believe the rollover will provide crucial breathing room as Pakistan works on broader economic reforms and seeks additional external financing.
The SBP noted that maintaining such deposits is important for ensuring market stability. The presence of these funds helps Pakistan meet external payment requirements and reduce uncertainty in the foreign exchange market.
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With the extension of the $3 billion deposit, Pakistan gains another year of support from Saudi Arabia at a critical time. The move underscores Riyadh’s commitment to helping Pakistan navigate ongoing financial challenges and stabilize its economic path.
