Overview
- In a statement cited by the State Bank of Pakistan, the Saudi Fund for Development confirmed extending the $3 billion deposit maturing on December 8, 2025, for another year.
- The funds remain parked at the State Bank of Pakistan and are aimed at strengthening foreign exchange reserves and supporting economic growth.
- Officials say the facility will help cover import payments, service external debt, and bolster short-term liquidity.
- Economists note the renewal may lift investor sentiment and lessen the near-term need for additional external borrowing.
- The deposit was first provided in 2021, and the latest extension follows October discussions between Pakistan’s prime minister and Saudi Arabia’s crown prince on a new Economic Cooperation Framework.