Saudi fund extends $3 billion deposit with Pakistan for another year

Saudi fund extends $3 billion deposit with Pakistan for another year

Saudi fund extends $3 billion deposit with Pakistan for another year. File Photo

December, 4 2025

LAHORE (Web Desk): The Saudi Fund for Development has extended its $3 billion deposit with the State Bank of Pakistan for another year, strengthening Pakistan’s foreign exchange reserves and supporting economic growth.

Originally signed in 2021, the deposit has been rolled over in 2022, 2023, and 2024, providing vital support as Pakistan navigates a prolonged economic crisis.

The Saudi Fund for Development (SFD), on behalf of the Kingdom of Saudi Arabia, has extended the term of the deposit for another year, while the former extension of the USD 3 billion deposit was maturing on 8 December 2025.

Saudi Arabia first extended the deposit in 2022 when Pakistan faced an economic crisis caused by years of financial mismanagement and climate-related losses. In June 2023, Pakistan narrowly avoided a sovereign default after securing a last-minute bailout from the IMF.

Saudi Arabia has historically assisted Pakistan through loans, deferred oil payments, guarantees to international lenders, and remittances, hosting over 2.5 million Pakistani nationals.

The countries also strengthened defense ties through a strategic pact in September, declaring that an attack on one would be considered an attack on both.