KARACHI: Pakistan has received $2 billion from Saudi Arabia, providing much-needed support to its foreign exchange reserves, the State Bank of Pakistan (SBP) confirmed on Thursday. The funds were transferred by the Saudi Ministry of Finance as part of a broader financial assistance package aimed at stabilizing Pakistan’s economy.
The development comes a day after Finance Minister Muhammad Aurangzeb revealed that Saudi Arabia had committed an additional $3 billion in deposits, which are expected to be disbursed soon. This financial assistance is seen as a crucial step in strengthening Pakistan’s balance of payments and easing pressure on its dwindling reserves.
According to officials, the existing $5 billion Saudi deposit has also been restructured. Instead of the previous annual rollover arrangement, the amount will now be extended for a longer three-year period. This move provides Pakistan with greater financial stability and reduces short-term repayment risks.
The additional Saudi funding comes at a critical time as Pakistan faces external payment obligations, including a $3.5 billion repayment to the United Arab Emirates this month. The repayment is significant, accounting for nearly 18 percent of the country’s foreign exchange reserves, which stood at approximately $16.4 billion as of late March.
Economic analysts believe that the Saudi deposit will help stabilize the Pakistani rupee, improve investor confidence, and support ongoing negotiations with international financial institutions. It also highlights the strong economic ties between Pakistan and Saudi Arabia, which have consistently played a key role in supporting Islamabad during financial challenges.
A spokesperson from Saudi Arabia’s Ministry of Finance confirmed the commitment, stating that the $3 billion deposit aims to support Pakistan’s balance of payments and overall economic stability. The assistance is part of broader cooperation between the two countries, reflecting long-standing strategic and economic relations.
Experts suggest that while the inflow will provide temporary relief, Pakistan will need to continue structural reforms and maintain fiscal discipline to ensure long-term economic sustainability. The government is also expected to pursue further external financing and investment opportunities to strengthen the country’s financial position.
