Pakistan has received another major financial boost after Saudi Arabia transferred $1 billion into the country’s account, strengthening foreign exchange reserves and providing temporary relief to the economy. The inflow forms part of a broader financial support package designed to stabilise Pakistan’s balance of payments and support overall economic conditions.
The State Bank of Pakistan confirmed that the latest $1 billion deposit arrived from the Saudi Ministry of Finance on April 20. Officials said the transfer represents the second installment of a previously agreed $3 billion deposit programme between the two countries aimed at reinforcing Pakistan’s financial stability.
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Earlier in the same arrangement, Pakistan had already received the first tranche of $2 billion on April 15, completing a large portion of the financial package within a short period. That earlier inflow helped prevent a sudden drop in Pakistan’s foreign exchange reserves and provided immediate support to the country’s external financial position.
Moreover, economic officials believe the timely arrival of these funds will help stabilise reserve levels and offer breathing space as Pakistan manages a challenging external payments schedule. The additional liquidity is also expected to support economic confidence and reduce short-term financial pressure on the country’s fragile economy.
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However, Pakistan still faces significant financial obligations, including repayments of around $3.5 billion to the United Arab Emirates within the same month. The situation has become more complicated after the UAE reportedly declined to roll over its existing dollar deposits, increasing repayment pressure on Islamabad.
At the same time, Pakistan has already repaid $1.2 billion against the maturity of its Eurobonds earlier this month, adding further strain on reserves. Nevertheless, Saudi Arabia’s financial support, including the extension of an existing $5 billion deposit, highlights strengthening economic cooperation and strategic ties between the two countries.