ISLAMABAD: State Bank of Pakistan (SBP) on Thursday confirmed the receipt of $2 billion from Saudi Arabia, providing timely support to the country’s foreign exchange reserves.
According to the central bank, the inflow was recorded with a value date of April 15, 2026. The development coincides with Prime Minister Shehbaz Sharif’s ongoing visit to Saudi Arabia, where diplomatic engagements are focused on regional peace and economic cooperation.
A day earlier, Saudi Arabia pledged an additional $3 billion in deposits and extended its existing $5 billion facility for another three years. Finance Minister Muhammad Aurangzeb stated that the $5 billion deposit would now be maintained on a longer-term basis, replacing the previous annual rollover arrangement.
Despite this support, Pakistan faces near-term external financing challenges, including the scheduled repayment of a $3.5 billion loan to the United Arab Emirates later this month. The repayment is expected to exert pressure on foreign exchange reserves and could risk breaching targets under the International Monetary Fund programme.
The situation comes at a sensitive time for Pakistan’s external account, already strained by rising global oil prices and economic spillovers from ongoing Middle East tensions.
Official data shows Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, covering nearly three months of imports. However, the inability to secure a rollover agreement with the UAE for the $3.5 billion facility in March — the first such instance in seven years — has heightened concerns over short-term financing gaps.
While Pakistan’s external position remains under pressure, it continues to be supported by ongoing stabilisation efforts under IMF-backed reforms. Analysts caution that external financing risks remain a key vulnerability, particularly amid volatile energy markets and tight global financial conditions.
