Key Points
- Saudi Arabia has extended the USD 3 billion deposit with the State Bank of Pakistan (SBP) for another year, following the expiry of the previous term.
- The deposit was initially signed in 2021 with the Saudi Fund for Development (SFD) and has been rolled over in 2022, 2023, and 2024.
- The latest extension will help strengthen Pakistan’s foreign-exchange reserves and support the domestic economy.
- The move reflects the continuation of close economic and diplomatic relations between Saudi Arabia and Pakistan.
ISLAMABAD: Saudi Arabia has extended the term of its USD 3 billion deposit with the State Bank of Pakistan (SBP) for one more year, ARY News reported on Thursday, citing well-placed sources.
The previous term, extended in December 2024, was set to expire today. The deposit, initially signed in November 2021 under the Saudi Fund for Development (SFD), has been periodically rolled over in 2022, 2023, and 2024, reflecting the Kingdom’s continued support for Pakistan’s economy.
According to the official SBP document (ECD/M&PRD/PR/01/2024‑86), these extensions have strengthened foreign exchange reserves and supported economic growth.
The latest rollover ensures liquidity for Pakistan’s central bank, aiding in balance-of-payments management, import financing, and stabilisation of the national currency. Analysts note that such financial support is crucial for sustaining macroeconomic stability, particularly amid ongoing fiscal and external sector pressures.
The extension also underscores the strong bilateral relationship between the two countries, with Saudi Arabia continuing its long-standing assistance through deposits and financial arrangements designed to enhance Pakistan’s economic resilience.
