The deposit, originally signed in 2021 and repeatedly rolled over in 2022, 2023, and 2024, was set to mature on December 8.
The SBP confirmed on Thursday that the renewal reflects the Kingdom’s continued support at a time when Pakistan remains vulnerable to external shocks. Officials described the extension as a measure that provides Pakistan with much needed breathing room amid depleted reserves and lingering financial uncertainty.
According to the central bank, the rollover will help bolster foreign exchange reserves, stabilize short term finances, and contribute to broader economic development. For a country navigating chronic fiscal strain, the extension offers a cushion against further volatility.
Pakistan has grappled with years of economic turbulence marked by mismanagement, rising debt, and unprecedented losses from climate disasters.
In mid 2023, the country narrowly escaped default after securing a last minute IMF bailout. Against this backdrop, Saudi Arabia’s timely assistance has acted as a steady anchor, offering Islamabad a measure of stability during repeated periods of distress.
The Kingdom’s support goes beyond deposits. Riyadh has previously supplied oil on deferred payments, offered guarantees to global lenders, and provided sustained diplomatic backing. Saudi Arabia also remains Pakistan’s largest source of remittances, with over 2.5 million Pakistanis living and working in the Kingdom.
The two nations have recently deepened defense and economic cooperation, including the signing of a strategic pact earlier this year stating that an attack on one will be considered an attack on both.
Analysts say the relationship continues to rest on mutual trust, shared interests, and decades of consistent engagement.
As Pakistan works to rebuild its economic footing, the Saudi extension is seen not just as financial assistance but as a vote of confidence a signal that Islamabad is not navigating the storm alone.
