Saudi Arabia Rolls Over $3bn Deposit to Support Pakistan Economy
ISLAMABAD: Saudi Arabia has extended the term of its $3 billion deposit with Pakistan for another year, providing crucial support to the country’s economy, the State Bank of Pakistan (SBP) announced on Thursday.
The central bank said the deposit, placed on behalf of the Saudi Fund for Development (SFD), was originally due to mature on December 8, 2025. The rollover will strengthen Pakistan’s foreign exchange reserves and contribute to economic growth and development.
Deposit History and Economic Impact
This $3 billion deposit was first placed with the SBP in 2021 and has been periodically rolled over since then. The fresh extension comes as Pakistan faces economic pressures, including a constrained foreign exchange reserve, rising inflation, and a growing fiscal deficit.
As of November 21, 2025, Pakistan’s total liquid foreign reserves stood at $19.6 billion, with commercial banks holding $5.04 billion. SBP’s own foreign exchange reserves rose slightly by $9 million to $14.56 billion during the week ending November 21.
More about Pak Saudi friendship
Strengthening Bilateral Economic Ties
The deposit extension follows the October meeting between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman at the Future Investment Initiative (FII9) conference in Riyadh. During the meeting, the leaders agreed to launch an “Economic Cooperation Framework” to boost trade, investment, and mutual economic growth.
The central bank emphasized that the rollover demonstrates the Kingdom of Saudi Arabia’s ongoing support for Pakistan’s economic stability and development amid challenging fiscal conditions.
