SBP Receives Final $1bn From Saudi Arabia, Completing $3bn Deposit |
The State Bank of Pakistan (SBP) has confirmed the receipt of $1 billion from the Ministry of Finance of the Kingdom of Saudi Arabia, marking the second tranche of a $3 billion deposit agreement aimed at supporting Pakistan’s external financial stability.
According to a statement issued by the central bank on Tuesday, the funds were received with a value date of April 20, 2026. The first tranche of $2 billion had already been transferred earlier this month, on April 15, 2026, completing the full $3 billion deposit arrangement between the two countries.
The inflows come in the wake of Prime Minister Shehbaz Sharif’s recent visit to Saudi Arabia, where he held high-level meetings, including with Crown Prince Mohammed bin Salman, focusing on strengthening bilateral cooperation and discussing regional peace initiatives. During the visit, Pakistan acknowledged Saudi Arabia’s continued economic support and strategic partnership.
Separately, Finance Minister Muhammad Aurangzeb had previously confirmed that Saudi Arabia would not only provide the $3 billion deposit but also extend its existing $5 billion facility for an additional three years, easing short-term repayment pressures on Islamabad.
The financial assistance arrives at a critical time for Pakistan’s external account position, which has been under strain due to rising global oil prices, external debt repayments, and tighter international financing conditions. The country recently repaid $2 billion to the United Arab Emirates, part of a broader effort to manage maturing obligations.
Pakistan’s foreign exchange reserves stood at $16.4 billion in late March, sufficient for nearly three months of imports, but analysts warn that continued reliance on external deposits underscores persistent vulnerabilities in the balance of payments.
Saudi Arabia has historically remained one of Pakistan’s key financial supporters, providing repeated bailout packages and oil financing arrangements during past economic crises, including a major support package in 2018.