KSA: Saudi Arabia has extended the tenure of its $3 billion deposit placed with Pakistan, providing a timely boost to the country’s foreign exchange reserves and economic stability. The Saudi Fund for Development (SFD) has approved a one-year extension, ensuring that the crucial support remains with the State Bank of Pakistan (SBP) for another year.
The deposit, originally placed in November 2021, came under an agreement between the SBP and SFD to help Pakistan strengthen its reserve position during a challenging economic period. With the tenure set to expire today, the extension offers continuity and financial breathing space, particularly at a time when Pakistan is working to stabilise economic indicators and maintain external financing support.
Officials say the extension of the $3 billion deposit will assist the country in maintaining adequate foreign exchange buffers, supporting the rupee, and improving investor confidence. The Saudi deposit remains one of Pakistan’s key external financial cushions, particularly at a time when global economic conditions remain uncertain.
In addition to the extension of the Saudi deposit, Pakistan’s financial sector has recorded encouraging growth. According to the latest SBP data, bank deposits reached a new all-time high of Rs. 31,626 billion in March 2025. This marks an impressive year-on-year increase of 11.7 percent and a month-on-month rise of 3.8 percent.
Compared to March 2024, when bank deposits stood at Rs. 28,321 billion, the banking sector saw an expansion of Rs. 3,305 billion over the year. In the short span of one month—from February 2025’s total of Rs. 30,457 billion—deposits grew by a substantial Rs. 1,169 billion, reflecting growing confidence in the financial system and improved liquidity conditions.
Pakistan also posted a record current account surplus of $1.2 billion in March, the highest monthly surplus in the country’s history. Economists view this development as a sign of stabilising external accounts, driven by improved exports, remittances, and controlled imports.
The extension of the Saudi deposit, combined with strong banking sector performance and a historic current account surplus, paints a more positive picture for Pakistan’s near-term economic outlook. As policymakers continue structural reforms, these financial gains may help sustain momentum and strengthen long-term resilience.
