Saudi Arabia Extends $3 Billion Deposit to Pakistan

Saudi Arabia has extended the additional $3 billion deposit it provided to Pakistan in April 2026, Finance Minister Muhammad Aurangzeb said on 4 November. The extension is for a "reasonable period," he told reporters at Parliament House in Islamabad.

The facility had been due to mature in late October. Aurangzeb said he held productive talks with his Saudi counterpart during recent World Bank-IMF meetings. He stated that Pakistan does not currently need further assistance from Riyadh, as foreign-exchange reserves cover more than three months of imports.

Saudi Arabia has also extended its existing $5 billion deposit until 2028. Together with support from China and the United Arab Emirates, these deposits form part of the external financing that underpins Pakistan's $7 billion IMF programme. The IMF Executive Board is expected to review the programme in December.

Aurangzeb said the government aims to reduce external debt servicing to about $3.5 billion in the next fiscal year, down from roughly $4 billion this year. Pakistan raised $3 billion from international markets in September. Prospects for a separate $10 billion US liquidity facility have receded; the minister said market access has already improved.

The rollover eases immediate refinancing pressure. Pakistan still faces significant external repayments in the current fiscal year and continues to rely on bilateral support to maintain reserve levels while it lengthens the maturity of its debt.