Overview
- The central bank–held funds, originally due today, will remain on deposit for another year to late 2026.
- The money originates from the Saudi Development Fund, which first placed the $3 billion with the State Bank of Pakistan in 2021.
- Officials say the extension will help cover import payments, service external debt, and strengthen liquidity buffers.
- Economists note the facility has supported foreign exchange reserves over time and can steady the currency by bolstering investor sentiment.
- Sources say the arrangement gives Pakistan flexibility to meet urgent financing needs without immediately turning to international markets.