Saudi Arabia Extends $5bn Deposits with Pakistan for Three Years

Pakistan has secured a major financial relief as Saudi Arabia has rolled over $5 billion in deposits for three years, helping ease pressure on the country’s external account.

Finance Minister Muhammad Aurangzeb confirmed the development on Wednesday. State Bank of Pakistan (SBP) Governor Jameel Ahmed also confirmed the rollover while speaking to reporters outside Parliament House.

The SBP governor said the rollover would support Pakistan in managing its foreign debt repayments during the current fiscal year. He added that the country’s foreign debt servicing had fallen from $26.5 billion in 2024-25 to $21.5 billion in 2026-27.

Of the $21.5 billion in expected debt servicing, around $3.5 billion will go toward interest payments. About $12 billion consists of deposits held with the central bank, while another $3 billion in commercial loans is expected to be refinanced.

The SBP governor said Saudi Arabia accounts for $8 billion of the total $12 billion in deposits. Pakistan will also need further rollovers for deposits maturing in December 2026 and March 2027.

He said Pakistan paid $2.2 billion in foreign debt servicing in July 2026, but repayment pressure is expected to remain lower during the rest of the fiscal year.

Meanwhile, Pakistan’s total foreign exchange reserves stood at $22.6 billion as of July 17, 2026, including $17.2 billion held by the SBP and $5.4 billion with commercial banks.

The SBP has also been buying dollars from the interbank market to strengthen the country’s foreign exchange reserves. The governor said the central bank purchased around $9 billion during the last financial year to build a buffer against external economic shocks.

Jameel Ahmed said Pakistan is currently comfortable with its foreign debt repayment position. He indicated that the central bank will continue focusing on strengthening foreign exchange reserves to protect the economy against possible future shocks, including a sharp rise in international fuel prices.