Pakistan and Saudi Arabia have entered into a new financial arrangement under which a $3 billion deposit provided through the Saudi Fund for Development (SFD) will be extended for a longer period. The agreement, which was signed between the Saudi Fund for Development and the State Bank of Pakistan (SBP), ensures the continuation of this important financial support, which plays a key role in stabilizing Pakistan’s external accounts.
By extending the maturity of the deposit, Saudi Arabia is helping Pakistan maintain stronger foreign exchange reserves at a time when economic stability remains a priority. This support is expected to provide additional breathing space for Pakistan’s financial management and external payment obligations.
In addition to this extension, Saudi Arabia has also recently committed to further strengthening its financial assistance to Pakistan. Earlier in the week, it pledged an additional $3 billion deposit and also extended an existing $5 billion financing facility for another three years. These combined measures reflect ongoing financial cooperation between the two countries and highlight Saudi Arabia’s continued role in supporting Pakistan’s economic stability through structured deposits and long-term funding arrangements.
