Karachi: The State Bank of Pakistan (SBP) on Tuesday confirmed the receipt of $1 billion from the Ministry of Finance Saudi Arabia, marking the second tranche of a $3 billion deposit agreement with the Saudi Arabia.
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According to the central bank, the funds were received with a value date of April 20, 2026. The SBP added that the first tranche of $2 billion had already been received on April 15, completing a significant portion of the agreed financing arrangement.
The inflows are expected to strengthen Pakistan’s external account by boosting foreign exchange reserves at a time when the country is working to maintain macroeconomic stability. Finance Minister Muhammad Aurangzeb had earlier confirmed that Saudi Arabia committed $3 billion in additional deposits, while also extending the tenure of an existing $5 billion deposit beyond its previous annual rollover structure.
Aurangzeb reiterated the government’s commitment to meeting targets set under the International Monetary Fund programme, including building reserves to around $18 billion — equivalent to roughly 3.3 months of import cover — by the end of the fiscal year.
The latest inflow comes at a critical time as Pakistan seeks to meet external financing needs and stabilise its balance of payments. Officials said Saudi financial support would help offset recent outflows, including the repayment of a $450 million loan to the United Arab Emirates.
In addition to deposits, Pakistan is also pursuing further financial support through oil facility arrangements with Saudi Arabia. The current deferred oil payment facility, valued at around $1 billion annually, is nearing completion and has allowed Islamabad to import oil on flexible terms.
Meanwhile, Pakistan is expecting an additional $1.21 billion disbursement from the IMF next month, subject to board approval following a staff-level agreement. The government is also planning to access international capital markets through bond issuances, including a potential Panda bond in the China market, along with borrowing from commercial banks.
Officials noted that Pakistan currently holds approximately $12 billion in deposits from key partners — including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE — forming a crucial component of the country’s external financing framework.
