Pakistan has received a financial lifeline as Saudi Arabia deposited $2 billion, easing pressure on the country’s foreign exchange reserves.
The State Bank of Pakistan has confirmed the receipt of $2 billion in deposits from Saudi Arabia. This inflow has helped avert the risk of a sudden and significant decline in the country’s foreign exchange reserves, offering short-term stability to the economy.
Officials say the timely arrival of these funds has provided breathing space as Pakistan navigates a challenging external payments schedule.
State Bank of Pakistan has received funds of US$2 billion from Ministry of Finance, Kingdom of Saudi Arabia in the value date of 15April2026.
— SBP (@StateBank_Pak) April 16, 2026
Pressure from UAE repayments
Despite the relief, Pakistan still faces a major financial obligation of $3.5 billion payable to the United Arab Emirates within the same month.
The situation has been further complicated after the UAE declined to roll over its existing dollar deposits, increasing immediate repayment pressure on Islamabad.
Eurobond adds to financial strain
In addition to the UAE payment, Pakistan has already repaid $1.2 billion against the maturity of its Eurobonds this month. These outflows had raised concerns about a sharp depletion in reserves before the Saudi deposit was received.
The combined pressure of debt repayments and declining reserves had heightened fears of financial instability.
However, the Saudi deposit has temporarily eased concerns, helping stabilize the country’s external position while policymakers continue to manage upcoming liabilities.
Also Read: Saudi Arabia announces $3bn aid for Pakistan
Earlier on Wednesday, Saudi Arabia had agreed to provide a $3 billion deposit to Pakistan, aimed at supporting its balance of payments and easing immediate financial pressures. The announcement was confirmed by both Saudi officials and Finance Minister Muhammad Aurangzeb.
This fresh support comes in addition to Riyadh’s decision to extend the tenure of an existing $5 billion deposit, further reinforcing Pakistan’s financial stability. Officials say the assistance reflects deepening economic and strategic ties between the two countries.
Pressure from UAE repayment, reserve targets
Pakistan is currently facing a $3.5 billion repayment obligation to the United Arab Emirates, which accounts for nearly 18% of its foreign exchange reserves. As of March 27, reserves stood at around $16.4 billion.
Also Read: Saudi Arabia interested in increasing investment in Pakistan
Under its $7 billion program with the International Monetary Fund, Pakistan is targeting reserves of over $18 billion by June -- making the Saudi support particularly timely.
Aurangzeb emphasized that the funding will help strengthen Pakistan’s external account and ensure reserves remain aligned with IMF commitments and market obligations.
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