The State Bank of Pakistan (SBP) has confirmed on Tuesday that it has received $1 billion from the Kingdom of Saudi Arabia (KSA). This inflow represents the second installment of a $3 billion deposit agreement recently finalized between the two nations.


According to a statement from the central bank, the funds arrived on April 20. “State Bank of Pakistan has received funds of US$1 billion from Ministry of Finance, Kingdom of Saudi Arabia in the value date of 20April2026,” the SBP noted. 

The transaction follows soon after the transfer of the first tranche, worth $2 billion, which was processed last week.

Saudia’s financial support comes after Prime Minister (PM) Shehbaz Sharif’s recent visit to the country.  During the trip, the Kingdom pledged an additional $3 billion in deposits and extended an existing $5 billion facility for another three years.

The inflows arrive as Pakistan prepares to repay a $3.5 billion loan to the United Arab Emirates (UAE) later this month. 

As of March 27, Pakistan’s foreign exchange reserves were recorded at $16.4 billion, a level sufficient to cover approximately three months of imports. However, the lack of a rollover agreement with the UAE has created a financing gap.

In March, Islamabad was unable to secure an extension on the $3.5 billion UAE facility, the first time in seven years that such a rollover was not granted. 

The pressure on external accounts is further compounded by high global oil prices and economic volatility resulting from regional tensions in the Middle East.

While the foreign exchange position is currently under strain, the government is maintaining stabilization efforts linked to IMF reforms.