Web Desk: Saudi Arabia has once again extended the term of a $3 billion deposit placed with Pakistan’s central bank, the State Bank of Pakistan (SBP). The move will provide short-term relief to the country’s foreign-exchange buffers.
SBP said the Saudi Fund for Development has extended the $3 billion deposit for another year, as it was set to expire in early December.
The deposit was placed by the Saudi Fund for Development on behalf of the Kingdom and has been held in the SBP since 2021.
The arrangement has been rolled over several times most recently in 2022, 2023 and again this year, as Riyadh seeks to support Pakistan’s external stability.
Pakistani officials and media reported that the deposit was scheduled to end “today” in some bulletins.
But the SBP statement clarified that the SFD formally extended the term for another year, preventing an immediate hit to reserves.
$3bn deposit has been an important headrest for Pakistan’s foreign-exchange reserves and helps the central bank manage external obligations and currency impulsiveness.
Rollover of such deposits reduces short-term pressure on reserves and buys time for broader economic adjustments.
The extension was announced via SBP and SFD releases and widely reported by local and international outlets.
Officials say the move reflects continued Saudi support and close bilateral ties; independent analysts say while rollovers help, Pakistan still needs structural reforms and fresh inflows to secure medium-term stability.
Field Marshal Asim Munir, commander royal Saudi land forces discuss regional security
