Saudi Arabia extended a $5 billion loan to Pakistan for three years, significantly reducing short term debt pressures.
Saudi Arabia rolled over a $5 billion loan owed by Pakistan for three years. The State Bank of Pakistan announced the update during an official briefing. The rollover eases immediate repayment pressure on the central bank.
Pakistan currently holds $8 billion in total Saudi deposits. Saudi Arabia sent $3 billion in new deposits to Pakistan in April this year.
External Debt Repayments and Rollover Breakdown
Pakistan needs to pay $21.5 billion in foreign debt obligations during the current fiscal year. The State Bank released details regarding the breakdown of these payments.
- The total principal loan amount stands at $18 billion within the required payments.
- Bilateral partners will roll over $11 billion of that $18 billion principal amount.
- Interest payments on foreign loans decreased by $500 million this year
- Pakistan repaid $2.2 billion in external loans during July 2026.
- Authorities expect refinancing for a $1.3 billion Chinese loan next month.
Foreign Reserves and Currency Market Actions
The State Bank of Pakistan actively built up foreign currency reserves over the past year. The central bank bought $9 billion from the open market during the last fiscal year.
Central bank officials project total foreign exchange reserves to pass $20 billion by December 2026.
