Islamabad (TDI): Saudi Arabia has extended the maturity of its $3 billion deposit with the State Bank of Pakistan (SBP) for another year, providing a crucial financial cushion as Pakistan navigates ongoing liquidity challenges.
The rollover, facilitated through the Saudi Fund for Development (SFD), continues a support mechanism that has been in place since 2021, The Express Tribune reported.
Originally scheduled to mature on December 8, 2025, the deposit will now remain with the SBP until December 2026. Officials say the extension underscores Riyadh’s commitment to Pakistan’s economic stability, bolstering reserves and helping the country meet key IMF benchmarks.
“This will strengthen Pakistan’s foreign exchange reserves and support economic growth and development,” the SBP said in a statement.
As of November 28, 2025, Pakistan’s total liquid foreign currency reserves stood at $19.59 billion, including $14.57 billion at the central bank and $5.01 billion with commercial banks. While reserves have fluctuated around this level in recent months, a slight uptick of $14 million was recorded during the week.
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Speaking at Pakistan Women Entrepreneurship Day 2025 in Karachi, SBP Governor Jameel Ahmad noted that the country’s external debt-to-GDP ratio has fallen from 31% to 26%, marking the first meaningful improvement in years. “Between 2015 and 2022, external debt grew by $6.4 billion annually. Now the trend has reversed. We are stabilising instead of accumulating debt,” he said, emphasizing that Pakistan has not added to its external debt stock since 2022.
Governor Ahmad also projected remittances to surpass $40 billion this fiscal year and forecast a current account deficit between 0% and 1% of GDP, despite higher imports.
While the rollover provides short-term stability, some analysts warn it reflects structural vulnerabilities. The dependence on Gulf support, they argue, masks the need for deeper reforms in exports, productivity, governance, and investment climate.
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The Saudi rollover extends Pakistan’s financial runway, offering policymakers more time for reforms, debt management, and IMF-linked restructuring. While it strengthens reserves and eases debt pressures, it also underscores the fragile dependence on diplomatic goodwill, remittances, and program confidence rather than export-driven growth.
For now, Pakistan has secured another year of breathing space. How it uses this window may determine whether future rollovers are celebrated as lifelines or feared as evidence of deeper structural weakness.
