Saudi Arabia has approved an additional $3 billion deposit to Pakistan’s central bank, reinforcing financial support for the country as it navigates ongoing economic pressures.
The move, announced on Thursday, follows directives from King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, according to the Saudi Press Agency. The support is aimed at strengthening Pakistan’s economy and maintaining financial stability amid global headwinds.
The package also includes an extension of the maturity period for Saudi Arabia’s existing $5 billion deposit with the State Bank of Pakistan, providing Islamabad with additional breathing space on its external obligations.
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Finance Minister Muhammad Aurangzeb had earlier indicated that Riyadh was considering further financial assistance alongside the rollover of existing deposits.
The announcement comes as Pakistan manages near-term repayment pressures, including a $3.5 billion obligation to the United Arab Emirates this month. The country’s foreign exchange reserves stood at approximately $16.4 billion as of late March, below its target under the International Monetary Fund programme, which aims to push reserves beyond $18 billion by June.
Saudi Arabia has historically provided financial support to Pakistan during periods of economic strain. A similar assistance package announced in 2018 included a $3 billion deposit and an oil financing facility of the same amount.
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Recent repayments by Pakistan, including over $1.4 billion in external debt and Eurobond-related obligations, signal continued efforts to manage liabilities while maintaining fiscal discipline, according to officials.