Inflows expected to bolster foreign exchange reserves amid ongoing efforts to maintain macroeconomic stability
SFD signs agreement to extend $3b deposit with the SBP. PHOTO: Radio Pakistan
The State Bank of Pakistan (SBP) said on Tuesday that the country has received $1 billion from the Ministry of Finance of Saudi Arabia, marking the second tranche of a $3 billion deposit agreement with the Kingdom, in a post on X.
In the statement, the central bank said the funds were received “with a value date of 20 April 2026” as part of the financing arrangement recently agreed between the two countries.
State Bank of Pakistan has received funds of US$ 1 billion from Ministry of Finance, Kingdom of Saudi Arabia in the value date of 20April2026. This is the second tranche of the $3 billion deposit recently agreed by Kingdom of Saudi Arabia. First tranche of $2 billion has already…
— SBP (@StateBank_Pak) April 21, 2026
“This is the second tranche of the $3 billion deposit recently agreed by the Kingdom of Saudi Arabia,” the bank said, adding that the first tranche of $2 billion had already been received, with a value date of 15 April 2026.”
The inflows are expected to support Pakistan’s external position by bolstering foreign exchange reserves amid ongoing efforts to maintain macroeconomic stability.
On April 15, Finance Minister Muhammad Aurangzeb said that Saudi Arabia has committed $3 billion in additional deposits, with disbursement expected in the coming week. He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period.
Aurangzeb has said that the government remained committed to maintaining reserves in line with its obligations under the IMF, including the objective of achieving around $18 billion in reserves, equivalent to approximately 3.3 months of import cover, by the end of the fiscal year.
The inflow comes at a critical juncture as Pakistan moves to meet its external financing needs and maintain reserve targets under its IMF programme.
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Separately, Pakistan has already cleared a longstanding $450 million loan owed to the UAE. Officials said Saudi financial backing would help cushion the impact of these outflows, ensuring stability in the external account. They added that with an additional $3 billion expected from Saudi Arabia, the total Saudi deposit exposure could rise to $8 billion.
Beyond deposits, Pakistan is also seeking to secure further financial space through oil facility arrangements with Saudi Arabia.
The current deferred oil payment facility, valued at around $1 billion annually, is nearing completion, under which Saudi Arabia has been supplying oil worth approximately $100 million per month.
Meanwhile, Pakistan expects to receive around $1.21 billion from the International Monetary Fund (IMF) next month, subject to approval by its executive board, following a staff-level agreement.
The government is also planning to tap international capital markets, including issuing bonds and exploring a Panda bond in the Chinese market, alongside potential borrowing from commercial banks.
According to officials, Pakistan currently holds around $12 billion in deposits from key partners, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE, forming a critical pillar of the country’s external financing framework.
