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Saudi Fund for Development (SFD), on behalf of the Kingdom of Saudi Arabia, has once again extended its $3 billion deposit with State Bank of Pakistan (SBP) for another year a clear signal of continuing financial support amid economic uncertainty.
The deposit, due to mature on 8 December 2025, has been rolled over yet again, underlining Riyadh’s ongoing commitment to bolster Pakistan’s foreign-exchange reserves and support macroeconomic stability. This arrangement first initiated in 2021 has been renewed repeatedly and remains an important lifeline for the country’s economy.
The original agreement between SFD and the SBP first placed the $3 billion with Pakistan back in November 2021, under efforts to cushion the economy against external and fiscal pressures. Over the years, as Pakistan faced economic challenges from balance of payments issues to currency pressure these rollover deposits have played a vital role in maintaining liquidity and supporting imports, debt servicing, and foreign-exchange stability.
Given recent global economic turbulence and domestic financial strains, the extension provides Islamabad a critical buffer to manage external obligations, stabilize reserves, and potentially meet urgent import and debt servicing needs without resorting to short-term borrowing. Analysts view this repeated rollover not just as a financial transaction but as a reflection of sustained trust and diplomatic goodwill between the two “brotherly” nations.
