Pakistan has received a major financial boost as Saudi Arabia agreed to extend a $3 billion loan. The move comes as a relief for the country’s economy amid ongoing financial pressures.
Saudi Arabia has postponed the repayment of a $3 billion loan to Pakistan for a period of three years.
The repayment of this deposit was originally scheduled for the current year, but both sides have now agreed to extend its tenure under a long-term rollover arrangement.
The deal was reached between the Saudi Fund for Development and the State Bank of Pakistan. As part of the agreement, the term of the $3 billion Saudi deposit held at the State Bank has been officially extended.
The agreement was signed by Sultan bin Abdul Rahman Al-Murshed on behalf of the Saudi Fund. Governor Jamil Ahmed signed the agreement for the State Bank of Pakistan, according to the Ministry of Finance.
Finance Minister Muhammad Aurangzeb was also present at the signing ceremony.
Strengthening economic ties and stability
The Ministry of Finance stated that the agreement reflects the strong economic relations between Pakistan and Saudi Arabia.
It added that the extension will further strengthen Pakistan’s external financial stability, providing much-needed support to the country’s economy.
On April 15, Pakistan announced that it had secured a crucial financial lifeline as Saudi Arabia pledged $3 billion in additional support to help stabilize the country’s economy.
Also Read: Saudi Arabia announces $3bn aid for Pakistan
Saudi Arabia agreed to provide a $3 billion deposit to Pakistan, aimed at supporting its balance of payments and easing immediate financial pressures. The announcement was confirmed by both Saudi officials and Finance Minister Muhammad Aurangzeb.
his fresh support comes in addition to Riyadh’s decision to extend the tenure of an existing $5 billion deposit, further reinforcing Pakistan’s financial stability. Officials say the assistance reflects deepening economic and strategic ties between the two countries.
Pakistan is currently facing a $3.5 billion repayment obligation to the United Arab Emirates, which accounts for nearly 18% of its foreign exchange reserves. As of March 27, reserves stood at around $16.4 billion.
Also Read: Pakistan receives $2bn from Saudi Arabia, SBP confirms
A day ago, Saudi Arabia deposited $2 billion with Pakistan, easing pressure on the country’s foreign exchange reserves.
The State Bank of Pakistan confirmed the receipt of $2 billion in deposits from Saudi Arabia. This inflow has helped avert the risk of a sudden and significant decline in the country’s foreign exchange reserves, offering short-term stability to the economy.
Officials say the timely arrival of these funds has provided breathing space as Pakistan navigates a challenging external payments schedule.
