The State Bank of Pakistan (SBP) said on Thursday it had received $2 billion from the Ministry of Finance of the Kingdom of Saudi Arabia.
Last month, Finance Minister Muhammad Aurangzeb stated that Saudi Arabia had pledged an additional $3 billion in deposits, with the funds expected to be disbursed soon.
He also noted that the existing $5 billion Saudi deposit would no longer follow the previous annual rollover arrangement and would instead be extended for a three-year period.
The fresh inflow comes in addition to Saudi Arabia’s decision to extend the rollover of another $5 billion deposit for a longer duration, Aurangzeb told reporters in Washington.
“We can confirm that Saudi Arabia has agreed to a $3 billion deposit with Pakistan to support their balance of payments,” a Saudi Ministry of Finance spokesperson told Reuters.
Pakistan is facing a $3.5 billion repayment to the UAE this month, putting pressure on its foreign exchange reserves, which stood at around $16.4 billion as of March 27.
The UAE repayment represents nearly 18% of these reserves.
Saudi Arabia has frequently supported Pakistan during times of economic difficulty.
In 2018, Riyadh announced a $6 billion assistance package that included a $3 billion deposit with Pakistan’s central bank and $3 billion worth of oil supplies on deferred payments.
