By SKM
April 21, 2026
ISLAMABAD: Pakistan received a major financial boost as the State Bank of Pakistan confirmed the arrival of the second tranche of $1 billion from Saudi Arabia, completing a $3 billion deposit aimed at strengthening the country’s fragile external position.
According to the central bank, the latest inflow, carrying a value date of April 20, follows an earlier $2 billion tranche received just days prior on April 15. The combined deposits mark a significant injection into Pakistan’s foreign exchange reserves at a time of persistent economic pressure.
The development comes on the heels of Prime Minister Shehbaz Sharif’s visit to the Kingdom, where he met Crown Prince Mohammed bin Salman in Jeddah. The discussions centered on deepening economic cooperation and addressing regional challenges, with Islamabad expressing appreciation for Riyadh’s continued financial backing.
Finance Minister Muhammad Aurangzeb had earlier indicated that further support worth $3 billion is expected in the near term. He also revealed that Saudi authorities have extended the tenure of an existing $5 billion deposit, removing the requirement for annual rollovers—a move seen as easing pressure on Pakistan’s reserve management.
The Saudi inflows come as Pakistan navigates tight external financing conditions, having recently repaid $2 billion to the United Arab Emirates. Analysts view the deposits as a critical stopgap that will help stabilize reserves and support investor confidence, though they caution that such measures provide temporary relief rather than long-term economic solutions.
Saudi Arabia has remained a key financial partner for Pakistan, stepping in with support packages during previous crises, including a $6 billion assistance program in 2018 that combined deposits with oil facility arrangements.
With reserves under strain and reform efforts ongoing, the latest inflows offer Islamabad breathing space—but underscore the continued reliance on external partners to stay economically afloat. Ends
