KARACHI: The State Bank of Pakistan (SBP) confirmed on Tuesday that Pakistan has received $1 billion from the Kingdom of Saudi Arabia, marking the second tranche of the recently announced $3 billion deposit package. According to the central bank, the funds were received from Saudi Arabia’s Ministry of Finance with a value date of April 20, 2026.
This follows the transfer of the first $2 billion tranche last week, providing timely support to Pakistan’s external account. The financial assistance comes after Prime Minister Shehbaz Sharif’s recent visit to Saudi Arabia, where diplomatic efforts were also focused on promoting peace in the Middle East.
Last week, Saudi Arabia had pledged an additional $3 billion in deposits for Pakistan and extended its existing $5 billion facility for another three years, offering crucial support at a time when the country is preparing to repay a $3.5 billion loan to the UAE this month. The repayment is expected to place pressure on Pakistan’s foreign exchange reserves and IMF programme targets.
The development comes amid increasing strain on the external account due to rising global oil prices and regional geopolitical tensions. As of March 27, Pakistan’s foreign exchange reserves stood at $16.4 billion, enough to cover nearly three months of imports. However, the upcoming UAE repayment and the failure to secure a rollover agreement in March have raised concerns about short-term financing pressures.
Despite these challenges, Pakistan’s external position remains part of its broader economic stabilisation efforts under IMF-backed reforms, though analysts continue to view external financing risks as a key vulnerability in the current environment.
