- Saudi Arabia extends existing maturity of $5 billion deposit.
- Riyadh announced financial support on royal directives: SPA.
- Reaffirms commitment to supporting Pakistan’s economy.
Saudi Arabia on Thursday announced additional $3 billion deposit to the State Bank of Pakistan (SBP), saying the financial support was announced on directives from King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman.
The development comes a day after Finance Minister Muhammad Aurangzeb said that Riyadh committed $3 billion in additional financial support for Pakistan, while also extending the maturity of its existing $5 billion deposit for a longer period.
The Saudi state news agency SPA confirmed this in a statement, saying the deposit aimed to support “the economy of the brotherly Islamic Republic of Pakistan” and strengthen its resilience in the face of global economic challenges.
The official statement said the support also includes extending the maturity of the kingdom’s $5 billion deposit with the SBP.
The financial support, it said, reinforced the bonds of brotherhood between the two brotherly countries and affirms Saudi Arabia’s continued commitment to supporting Pakistan’s economy.
The statement follows the State Bank of Pakistan’s earlier announcement of receiving $2 billion from Saudi Arabia “in the value date of April 15, 2026”.
The latest financial support underlines a deepening relationship between Riyadh and Islamabad, cemented last year by a mutual defense pact treating aggression against either as an attack on both.
Pakistan faces a $3.5 billion repayment to the United Arab Emirates this month that has put a strain on its foreign exchange reserves, which stood at about $16.4 billion as of March 27.
Under Pakistan’s $7 billion International Monetary Fund (IMF) programme, the country is targeting foreign exchange reserves of more than $18 billion by June.
Saudi Arabia has repeatedly stepped in to support Pakistan during periods of economic stress. In 2018, Riyadh unveiled a $6 billion package that included a $3 billion deposit at Pakistan’s central bank and $3 billion in oil supplies on deferred payment.
Pakistan has recently repaid $1.43 billion in external debt, including the $1.3 billion Eurobond.
Khurram Schehzad, adviser to the finance minister, made the announcement in a post on X on April 7, saying debt servicing continued to be executed, “… reflecting consistency, discipline, and strengthened capacity.”
The $1.43 billion repayment also included $126.125 million in coupon obligations on other Eurobond issuances, he added.
