Saudi Arabia transfers $1 billion to Pakistan as second tranche of $3 billion deposit

The State Bank of Pakistan (SBP) on Tuesday confirmed receipt of $1 billion from the Kingdom of Saudi Arabia, marking the second tranche of a $3 billion deposit arrangement.

The central bank said the funds were received from the Saudi Ministry of Finance with a value date of April 20, 2026. 

This follows the transfer of the first tranche of $2 billion last week.

The inflow comes after recent diplomatic engagement between Pakistan and Saudi Arabia, during which the kingdom also pledged an additional $3 billion in deposits and extended its existing $5 billion facility for three years.

The development coincides with pressure on Pakistan’s external account, as the country is set to repay a $3.5 billion loan to the United Arab Emirates this month.

Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, covering close to three months of imports, according to official data.

However, the upcoming repayment to the UAE and earlier failure to secure a rollover of the facility have increased near-term financing requirements.

The external position is also being affected by higher global oil prices and regional tensions impacting trade and energy costs.

Despite these pressures, the country’s financial position remains part of an ongoing stabilisation programme supported by the International Monetary Fund.

Analysts said external financing risks remain a key concern, particularly in the context of volatile energy markets and limited access to international capital.