Pakistan’s central bank has confirmed receiving $1 billion from Saudi Arabia’s finance ministry, completing the second tranche of a recently agreed $3 billion deposit support package.
According to the State Bank of Pakistan (SBP), the funds were received on April 20. The first tranche of $2 billion had already been transferred on April 15.
The latest inflow provides additional support to Pakistan’s foreign exchange reserves at a time when the country continues to rely on assistance from friendly nations and multilateral lenders to strengthen its external financing position.
Last week, Finance Minister Muhammad Aurangzeb stated that Saudi Arabia had committed an additional $3 billion in deposits for Pakistan, with disbursement expected soon. He also said the existing $5 billion Saudi deposit would no longer be renewed annually and would instead remain in place for three years.
The fresh financial support comes as Pakistan faces pressure on its external account, including a $3.5 billion repayment to the United Arab Emirates this month—an amount equal to nearly 18% of the country’s foreign exchange reserves. Saudi officials have reportedly said the new $3 billion deposit is intended to support Pakistan’s balance of payments.
Saudi Arabia has remained an important financial partner for Pakistan during previous economic challenges. In 2018, Riyadh announced a $6 billion assistance package that included a $3 billion deposit with the central bank and another $3 billion in deferred oil payment support.
In recent years, Saudi Arabia has continued to assist Pakistan through deposits, oil financing, and other measures aimed at helping the country manage balance-of-payments pressures.
