- The Saudi Arabian Development Fund is carrying over deposit for another year.
- The new expansion is aimed at boosting Pakistan’s foreign exchange reserves.
- The $3 billion deposit was initially placed with the SBP in 2021.
Saudi Arabia has extended the duration of its $3 billion deposit in Pakistan for another year to support the country’s economy, the State Bank of Pakistan (SBP) said on Thursday.
In a statement, the central bank said: “The Saudi Development Fund (SFD) on behalf of the Kingdom of Saudi Arabia has extended the term of its $3 billion deposit due December 8, 2025, for one more year.”
The SBP said the new deposit tenure extension will help strengthen foreign exchange reserves and contribute to the economic growth and development of the country.
The amount has been deposited with the SBP on behalf of the state, the central bank said.
It is pertinent to mention here that the $3 billion deposit was initially placed with SBP in 2021 and then converted since then.
The development came two months after Prime Minister Shehbaz Sharif and Saudi Arabia’s Crown Prince Mohammed bin Salman agreed to launch an “Economic Cooperation Framework” based on the two countries’ shared economic interests.
Meeting on the sidelines of the Future Investment Initiative (FII9) conference in Riyadh in October, the leaders had reaffirmed their mutual desire to strengthen trade and investment relations to serve their common interests.
It is pertinent to mention here that Pakistan is currently facing economic challenges including pressure on its foreign exchange reserves, rising inflation and a growing fiscal deficit.
Total liquid foreign exchange reserves held by the country stood at $19.6 billion as of November 21, 2025, the central bank said, adding that net foreign exchange reserves held by commercial banks stood at $5.04 billion.
“During the week ended November 21, 2025, SBP’s foreign exchange reserves increased by $9 million to $14,560.7 million,” the central bank added.
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