Islamabad: Saudi Arabia has extended its $3 billion deposit with the State Bank of Pakistan (SBP) for an additional year, providing critical support to Pakistan’s economy amid ongoing financial challenges. The central bank confirmed on Thursday that the Saudi Fund for Development (SFD) renewed the deposit, which was due to mature on December 8, 2025.
The SBP said the rollover would strengthen foreign exchange reserves and help stabilize the country’s economic growth and development. The deposit was first placed in 2021 and has been repeatedly extended to assist Pakistan during periods of economic pressure.
The move comes after Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman met during the Future Investment Initiative (FII9) conference in Riyadh. Both leaders agreed to deepen bilateral economic cooperation through a new Economic Cooperation Framework, aimed at boosting trade, investment, and long-term strategic partnerships between the two countries.
Pakistan is currently facing multiple economic challenges, including high inflation, a widening fiscal deficit, and pressure on foreign exchange reserves. As of November 21, 2025, the country’s total liquid reserves stood at $19.6 billion, with $14.56 billion held by the SBP and $5.04 billion with commercial banks. The central bank also reported a $9 million increase in reserves during the same week.
Experts say the rollover from Saudi Arabia is a timely and strategic support, reinforcing Pakistan’s financial stability and helping the country navigate its ongoing economic challenges.
