Pakistan receives $1bn from Saudi Arabia as second tranche of $3bn deposit

ISLAMABAD: Pakistan has received $1 billion from the Kingdom of Saudi Arabia, with the State Bank of Pakistan (SBP) saying the amount is the second tranche of a recently agreed $3 billion deposit.

"State Bank of Pakistan has received funds of US$ 1 billion from Ministry of Finance, Kingdom of Saudi Arabia in the value date of 20April2026," the central bank said in a statement issued on Tuesday.

The SBP said the latest inflow forms part of the $3bn deposit recently agreed by Saudi Arabia. The first tranche, amounting to $2bn, was transferred last week.

The development follows Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, where he pursued diplomatic engagement aimed at promoting peace in the Middle East.

Saudi support and external financing pressure

On Friday, Saudi Arabia announced an additional $3bn in deposits for Pakistan and also extended its existing $5bn facility for another three years.

The fresh inflow comes at a time when Pakistan’s external account remains under pressure. The country is reportedly due to return a $3.5bn loan to the United Arab Emirates this month, a repayment that could weigh on foreign exchange reserves and create risks for targets linked to Pakistan’s International Monetary Fund programme.

The latest Saudi deposit is therefore significant for reserve support as the country navigates a sensitive period for its external financing position.

The SBP’s confirmation provides official clarity on the transfer and its timing, identifying April 20, 2026, as the value date for the funds received from the Saudi Ministry of Finance.

The transfer also follows the earlier movement of $2bn under the same arrangement, taking the total amount received so far under the newly agreed $3bn deposit to the full pledged sum.

Saudi financial support has remained an important component of Pakistan’s efforts to manage its external sector. The latest deposit and the extension of the existing facility come as the country faces repayment obligations and broader pressure on reserves.

No further details were provided by the central bank in its statement beyond confirmation of the amount received, the source of the funds, and the value date.

The announcement nonetheless marks another key development in Pakistan’s efforts to shore up its external account through support from friendly countries at a time of heightened financing needs.