WASHINGTON: Pakistan and Saudi Arabia have signed an agreement to extend the maturity of a $3 billion deposit placed with the State Bank of Pakistan (SBP), the finance ministry said on Friday.
The agreement was signed by Sultan bin Abdul Rahman Al-Marshad, chief executive of the Saudi Fund for Development, and SBP Governor Jameel Ahmad on the sidelines of the World Bank-IMF Spring Meetings 2026 in Washington, D.C..
According to the statement, the agreement provides for the extension of the $3bn deposit previously placed by the Saudi Fund for Development with Pakistan’s central bank.
Finance Minister Muhammad Aurangzeb and Pakistan’s ambassador to the United States were present at the signing ceremony.
Strengthening economic ties
The finance ministry said the extension reflects the strong and longstanding economic partnership between Islamabad and Riyadh and would help support Pakistan’s external sector stability.
The development comes a day after Saudi Arabia announced an additional $3bn deposit for Pakistan, further reinforcing its financial backing.
Saudi state media reported that the support was extended under the directives of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman.
Earlier this week, the State Bank confirmed receipt of $2bn from Saudi Arabia, credited with a value date of April 15, 2026.
Pressure on external finances
The financial support comes at a critical time for Pakistan, which is facing external financing pressures, including a $3.5bn repayment due to the United Arab Emirates this month.
Pakistan’s foreign exchange reserves stood at approximately $16.4bn as of March 27, still below the target set under its $7bn programme with the International Monetary Fund, which aims to raise reserves above $18bn by June.
Ongoing financial support
Saudi Arabia has a long history of supporting Pakistan during economic challenges. In 2018, Riyadh announced a $6bn assistance package that included a $3bn deposit and $3bn worth of oil supplies on deferred payment.
Separately, Pakistan recently repaid $1.43bn in external debt, including a $1.3bn Eurobond, according to finance ministry adviser Khurram Schehzad, who said the repayments reflected improved fiscal discipline and debt management capacity.
Analysts say continued financial inflows from partners like Saudi Arabia will be crucial in helping Pakistan manage its external obligations and maintain economic stability in the months ahead.