Pakistan has received another financial boost as $1 billion from Saudi Arabia landed in the country’s account. The latest inflow is part of a larger support package aimed at strengthening the economy and stabilizing reserves.
The State Bank of Pakistan confirmed that it has received $1 billion from the Ministry of Finance of Saudi Arabia.
According to officials, the funds were transferred on April 20 as part of a previously agreed financial arrangement between the two countries. This payment marks the second installment under the $3 billion deposit program signed with Saudi Arabia.
Earlier, Pakistan had already received the first tranche of $2 billion on April 15, completing a significant portion of the agreement within days.
The State Bank of Pakistan had confirmed the receipt of $2 billion in deposits from Saudi Arabia. This inflow helped avert the risk of a sudden and significant decline in the country’s foreign exchange reserves, offering short-term stability to the economy.
Impact on Pakistan’s economy
Officials say the inflow of funds will play a key role in stabilizing Pakistan’s foreign exchange reserves. They say the timely arrival of these funds has provided breathing space as Pakistan navigates a challenging external payments schedule.
Also Read: Pakistan receives $2bn from Saudi Arabia, SBP confirms
The additional liquidity is also expected to improve overall economic stability, offering relief at a time when the country is navigating financial pressures.
Pressure from UAE repayments
Despite the relief, Pakistan still faces a major financial obligation of $3.5 billion payable to the United Arab Emirates within the same month.
Pakistan receives $2bn from Saudi Arabia, SBP confirms
The situation has been further complicated after the UAE declined to roll over its existing dollar deposits, increasing immediate repayment pressure on Islamabad.
Eurobond adds to financial strain
In addition to the UAE payment, Pakistan has already repaid $1.2 billion against the maturity of its Eurobonds this month. These outflows had raised concerns about a sharp depletion in reserves before the Saudi deposit was received.
The combined pressure of debt repayments and declining reserves had heightened fears of financial instability.
Also Read: Relief for Pakistan: Saudi Arabia extends $3bn loan for 3 years
On April 15, Saudi Arabia had 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.
This 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.
