Washington,(Parliament Times):The Saudi Fund for Development (SFD) has agreed to extend the maturity of its $3 billion deposit with the State Bank of Pakistan (SBP), providing crucial financial relief to Pakistan amid ongoing economic pressures.
The agreement was signed on Friday by SFD CEO Sultan bin Abdulrahman Al-Marshad and SBP Governor Jameel Ahmad. The signing ceremony, held in Washington, DC, was witnessed by Finance Minister Muhammad Aurangzeb during the sidelines of the World Bank-IMF Spring Meetings 2026.
The extension highlights the strong economic partnership between Pakistan and Saudi Arabia and is expected to bolster the country’s external sector stability.
In a related development, Pakistan recently received a $2 billion inflow from Saudi Arabia, providing immediate support to its foreign exchange reserves ahead of a scheduled $3.5 billion repayment to the United Arab Emirates (UAE) this month. The assistance is part of a broader $3 billion Saudi financing commitment aimed at strengthening Pakistan’s reserves.
Saudi authorities have also assured the rollover of an existing $5 billion deposit for a longer period, removing the earlier requirement of annual renewals. Officials believe this will significantly ease pressure on Pakistan’s reserves, especially as the UAE repayment represents nearly 18% of the country’s total foreign exchange holdings.
Pakistan is currently working to boost its reserves to around $18 billion—equivalent to about 3.3 months of import cover—while managing its external financing obligations. The government has already planned a phased repayment of $3 billion to the UAE, with $2 billion due on April 17 and the remaining $1 billion on April 23. Additionally, a $450 million loan to the UAE has already been cleared.
Amid these financial challenges, Islamabad is also considering seeking additional funding from the International Monetary Fund (IMF) under its existing programme. Officials indicate there is a strong likelihood that the IMF will approve Pakistan’s request to increase the loan size to help offset economic shocks stemming from the Middle East conflict.
Sources say Pakistan still has room to access an additional $2 billion to $2.5 billion under its quota limits, having so far utilized around 350% of its total quota. At the maximum 600% threshold, the country could potentially access up to $16 billion in total financing under the current arrangement.
With global financial pressures rising, including an expected $50 billion in financing requests from member countries, the IMF is reportedly considering expanding existing programmes rather than introducing new facilities.
Officials maintain that any additional IMF support would be critical in helping Pakistan navigate the economic fallout of the ongoing regional crisis and maintain financial stability under its Extended Fund Facility (EFF) programme.