Saudi Arabia extends $3bn deposit term for Pakistan, boosting reserves
Saudi Arabia has extended the tenure of the $3 billion deposit placed with Pakistan, a development that provides critical breathing space to the country’s fragile economy, according to well-placed sources quoted by ARY News. The extension of the deposit, originally placed in 2021 under an agreement between the State Bank of Pakistan (SBP) and the Saudi Fund for Development, is expected to support Pakistan’s foreign exchange reserves at a time when economic stabilisation remains a top headline across Pakistan News and Business & Economy updates.
Officials confirmed that the one-year extension was approved just as the earlier tenure was set to expire today. The $3 billion remains parked with the SBP and continues to function as a key buffer against external account pressures. Pakistan has relied on such bilateral deposits throughout recent years, particularly during periods of heightened economic strain, and the Saudi extension has been widely viewed as a positive step for reserve stability, attracting attention across Latest News streams.
Saudi Arabia had first signed the agreement in 2021 as part of broader financial cooperation with Pakistan, aimed at helping stabilise its macroeconomic fundamentals. Analysts say the renewed extension strengthens Islamabad’s short-term liquidity position and is likely to be welcomed by financial markets and multilateral partners.
Meanwhile, fresh SBP data shows Pakistan’s bank deposits have climbed to a historic peak of Rs31,626 billion as of March 2025, reflecting an 11.7 per cent year-on-year increase and a 3.8 per cent rise compared to the previous month. Deposits were recorded at Rs28,321 billion in March 2024, marking an impressive annual gain of Rs3,305 billion, while February 2025’s figure of Rs30,457 billion saw a monthly jump of Rs1,169 billion. The surge accompanies Pakistan’s record current account surplus of $1.2 billion in March — the highest monthly surplus in national history — a development widely discussed across World News and financial coverage.
The extension from Saudi Arabia, coupled with positive external sector indicators, is being viewed as a welcome relief for policymakers attempting to steer the economy toward greater stability.
