Pakistan, Saudi Arabia sign agreement to extend $3 billion deposit

Pakistan and Saudi Arabia on Friday signed an agreement to extend a $3 billion deposit from the Saudi Fund for Development (SFD).

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, witnessed the signing of a financial agreement in Washington, D.C., in the presence of the Ambassador of Pakistan to the United States, on the sidelines of the World Bank-IMF Spring Meetings 2026.

The agreement, signed between the Saudi Fund for Development (SFD) and the State Bank of Pakistan (SBP), provides for the extension of the maturity of a $3 billion deposit placed by SFD with the State Bank of Pakistan.

The agreement was signed by H.E. Mr Sultan bin Abdulrahman Al-Marshad, Chief Executive Officer of the Saudi Fund for Development, on behalf of SFD, and Mr Jameel Ahmad, Governor of the State Bank of Pakistan, on behalf of SBP.

The extension of the deposit reflects the strong and longstanding economic partnership between Pakistan and the Kingdom of Saudi Arabia, and will further support Pakistan’s external sector stability.

On Thursday, the State Bank of Pakistan confirmed the transfer of $2 billion from Saudi Arabia. 

Saudi Arabia, earlier this week, committed an additional $3 billion in deposits for Pakistan and extended its existing $5 billion facility for another three years.

Pakistan faces a $3.5 billion repayment to the UAE this month that has put a strain on its foreign ​exchange reserves, which stood at about $16.4 billion as of March 27. The repayment to the UAE amounts to roughly 18% of those holdings. 

Under Pakistan’s $7 billion IMF program, the country is targeting foreign exchange reserves of more than $18 billion by June.