Islamabad (TDI): The State Bank of Pakistan (SBP) on Tuesday confirmed the receipt of $1 billion from Saudi Arabia, marking the second tranche of a recently agreed $3 billion deposit aimed at strengthening Pakistan’s foreign exchange reserves.
According to the central bank, the funds were transferred on the value date of April 20, 2026, through Pakistan’s Ministry of Finance from the Kingdom of Saudi Arabia.
“This is the second tranche of the $3 billion deposit recently agreed by Saudi Arabia,” the SBP stated.
The first tranche of $2bn was transferred last week. The development came following Prime Minister Shehbaz Sharif’s visit to Saudi Arabia to push diplomatic efforts to promote peace in the Middle East.
Read More: Saudi Arabia Extends $3bn Deposit, Eases Pakistan’s Financing Pressure
On Friday, the kingdom pledged an additional $3bn in deposits for Pakistan and extended its existing $5bn facility for a further three years.
Pakistan will return a $3.5bn loan to the UAE this month, putting pressure on its reserves and risking breaches of its International Monetary Fund (IMF) program targets.
The development comes at a sensitive time for the country’s external account position, which is already under strain from rising global oil prices and economic spillovers linked to tensions in the Middle East.
According to official figures, Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, sufficient to cover close to three months of imports. However, the repayment requirement from the UAE has added fresh pressure on the country’s external buffers.
Read More: Pakistan Receives $2bn from Saudi Arabia as Riyadh Strengthens Financial Support
In March, Islamabad failed to secure an agreement with the UAE to roll over the $3.5bn facility, marking the first such failure in seven years and raising concerns about near-term financing gaps.
Pakistan’s foreign exchange position, though under pressure, remains part of a broader stabilisation effort under IMF-supported reforms.
Analysts say external financing risks remain a key vulnerability, particularly amid volatile energy prices and constrained global capital markets.
