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Saudi Arabia Extends $1 Billion Oil Facility to Pakistan, Rolls Over $5 Billion in SBP Deposits

The package is intended to ease near-term pressure on Pakistan’s foreign reserves to support market stability.

Overview

  • Pakistan’s Finance Ministry confirmed on Oct. 27 that the $1 billion oil facility will be available during fiscal year 2025–26.
  • Saudi Arabia rolled over $5 billion held at the State Bank of Pakistan, with $2 billion maturing in December 2025 and $3 billion in June 2026.
  • The time deposits carry a 4% interest rate and are being renewed annually under the bilateral assistance framework.
  • Pakistan has already received over Rs85 billion (about $300 million) in oil this fiscal year, with supplies running at roughly $100 million per month.
  • Officials and economists say the support strengthens foreign-exchange buffers, helps steady the rupee, and reinforces investor confidence.