The State Bank of Pakistan (SBP) has officially confirmed the receipt of $2 billion from Saudi Arabia. It will provide a critical shield as the country faces massive debt repayments to the UAE and international bondholders this month.
On Thursday, the State Bank of Pakistan announced that it received $2 billion from the Ministry of Finance, Kingdom of Saudi Arabia. The funds were credited with a “value date” of April 15, 2026.
This arrival comes at a perfect time, as Pakistan’s foreign exchange reserves were under immense pressure due to recent large payments.
According to reports, Saudi Arabia has also pledged an additional $3 billion in deposits, which are expected to arrive soon.
Furthermore, the Kingdom has agreed to extend its existing $5 billion deposit for a longer term, moving away from the old system where the money had to be renewed every year.
Why Pakistan Needed This Money Urgently
This month has been one of the most challenging for Pakistan’s finances. The $2 billion from Riyadh is essentially a “rescue” because of three major events:
- The UAE Debt Crisis: Pakistan is scheduled to pay back $3.5 billion to the United Arab Emirates (UAE) before the end of April. Sources confirm that Abu Dhabi refused to “roll them over” (extend the loan) as they had done in the past.
- Eurobond Repayment: On April 8, Pakistan successfully paid off $1.43 billion for a maturing Eurobond. While protecting Pakistan’s credit rating, it also reduced dollar reserves.
- IMF Targets: To stay in the International Monetary Fund (IMF) program, Pakistan must keep its foreign reserves at a certain level. Without the Saudi deposit, the $3.5 billion payment to the UAE would have caused reserves to drop to dangerous levels.
Stability for the Rupee and the Economy
Finance Minister Muhammad Aurangzeb stated that the government remains committed to reaching a target of $18 billion in reserves by June. The Saudi support not only stabilizes the exchange rate but also gives the government more breathing room to negotiate with the IMF for future loans.
