Extension of deposit reflects longstanding economic partnership between Islamabad and Riyadh, says finance ministry
\n washington
\nPakistan and Saudi Arabia have signed an agreement to extend the maturity of Riyadh\u2019s $3 billion deposit placed with the State Bank of Pakistan (SBP), according to a statement issued by the finance ministry on Friday.
\nSaudi Fund for Development Chief Executive Officer Sultan bin Abdul Rahman Al-Marshad and SBP Governor Jameel Ahmad signed the agreement on the sidelines of the World Bank-IMF Spring Meetings 2026 in Washington, read the statement.
\nThe agreement provides for the extension in the maturity of a $3 billion deposit placed by SFD with the SBP, it said.
\nFinance Minister Muhammad Aurangzeb and Pakistan\u2019s ambassador to the United States witnessed the signing of the agreement.
\nThe extension of the deposit reflects the strong and longstanding economic partnership between Pakistan and Saudi Arabia, and will further support Pakistan\u2019s external sector stability, the statement said.
\nThe development comes just a day after Saudi Arabia announced an additional $3 billion deposit to the SBP.
\nThe Saudi state news agency SPA said that the financial support was provided to Islamabad at the directives of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman.
\nEarlier that day, the central bank said it had received $2 billion from Saudi Arabia \u201cin the value date of April 15, 2026\u201d.
\nFinMin Aurangzeb had previously said that Riyadh committed $3 billion in additional financial support for Pakistan, while also extending the maturity of its existing deposit for a longer period.
\nSaudi Arabia has consistently provided support to Pakistan during periods of economic strain. In 2018, Riyadh unveiled a $6 billion package that included a $3 billion deposit at Pakistan\u2019s central bank and $3 billion in oil supplies on deferred payment.
\nMeanwhile, 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.
\nUnder Pakistan\u2019s $7 billion International Monetary Fund (IMF) programme, the country is targeting foreign exchange reserves of more than $18 billion by June.
\nPakistan has recently repaid $1.43 billion in external debt, including the $1.3 billion Eurobond.
\nKhurram Schehzad, adviser to the finance minister, made the announcement in a post on X on April 7, saying debt servicing continued to be executed, \u201c… reflecting consistency, discipline, and strengthened capacity.\u201d
\nThe $1.43 billion repayment also included $126.125 million in coupon obligations on other Eurobond issuances, he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
Extension of deposit reflects longstanding economic partnership between Islamabad and Riyadh, says finance ministry washington Pakistan and Saudi Arabia have signed an agreement to extend the maturity of Riyadh\u2019s $3 billion deposit placed with the State Bank of Pakistan (SBP), according to a statement issued by the finance ministry on Friday. Saudi Fund for Development […]<\/p>\n","protected":false},"author":2,"featured_media":542328,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-542313","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n