State Bank of Pakistan confirms receipt of final $1 billion tranche from Saudi Arabia

Web Desk
April 21, 2026

KARACHI – Pakistan has received an additional $1 billion from Saudi Arabia, completing the Kingdom’s $3 billion deposit commitment to support the country’s foreign exchange reserves and external account stability.

The State Bank of Pakistan (SBP) confirmed the receipt of funds from the Ministry of Finance of Saudi Arabia with a value date of April 20, 2026, marking the second and final tranche of the recently agreed deposit facility.

Full Saudi Commitment Disbursed

The SBP stated that this inflow follows the first tranche of $2 billion, which was received on April 15, 2026. With this latest transfer, the entire $3 billion deposit pledged by Riyadh has now been disbursed to Pakistan.

The agreement was formalized on April 17, 2026, when the Saudi Fund for Development (SFD) and the SBP signed the deposit extension deal on the sidelines of the IMF–World Bank Spring Meetings in Washington, D.C. Finance Minister Muhammad Aurangzeb witnessed the signing, alongside Pakistan’s Ambassador to the United States.

Extended $5 Billion Facility

Alongside the new $3 billion deposit, Saudi Arabia also extended its existing $5 billion deposit for a longer term, removing the earlier annual rollover condition. This provides Pakistan with greater certainty in managing its external financing requirements.

Finance Minister Aurangzeb expressed profound gratitude to the Saudi leadership for their continued support, stating that the assistance comes at a “critical time for Pakistan’s external financing needs” and would help reinforce foreign exchange reserves.

Context of UAE Repayments

The Saudi inflows arrive as Pakistan fulfills its repayment obligations to the United Arab Emirates**. The SBP confirmed that the government repaid $2 billion to the UAE on April 17, with the remaining amount expected to be paid by April 23.

The UAE had sought the return of its deposits, which were originally placed with the SBP as safe deposits. According to sources, Pakistan had been paying approximately 6 percent annual interest on the amounts owed to the UAE.

Impact on Foreign Reserves

The completion of the $3 billion Saudi deposit is expected to provide a significant boost to Pakistan’s foreign exchange reserves. As of April 10, the central bank’s foreign exchange reserves stood at $20.52 billion.

Under the IMF-supported program, Pakistan has committed to achieving approximately $18 billion in reserves by the end of the fiscal year.

Diplomatic Context

The financial support follows Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, where he engaged in diplomatic efforts aimed at promoting peace in the Middle East and strengthening bilateral economic cooperation.

The Foreign Office has rejected speculation linking the financial transactions to diplomatic pressures, describing the UAE repayment as a “routine financial transaction” carried out under mutually agreed terms.