Saudi Arabia extends $3bn deposit with Pakistan amid economic strain

Saudi Arabia has extended the maturity of its $3 billion deposit placed with the State Bank of Pakistan (SBP) for another year, continuing a financial lifeline that has helped bolster the country's foreign exchange reserves amid ongoing liquidity challenges. The extension, made through the Saudi Fund for Development (SFD), maintains a facility that has been in place since 2021 and rolled over repeatedly in support of Pakistan's macroeconomic stability. The deposit, originally due to mature on December 8, 2025, will now remain parked with SBP until December 2026. Officials said the extension reflects Riyadh's continued commitment to supporting Pakistan's economic foundation, helping strengthen reserve buffers and enabling the country to meet key International Monetary Fund (IMF) benchmarks.