Islamabad: Saudi Arabia has provided significant financial relief to Pakistan by extending the maturity of its $5 billion deposit for another three years, easing pressure on the country's external financing requirements.
Speaking to journalists, State Bank of Pakistan Governor Jameel Ahmad announced that Saudi Arabia has agreed to roll over the $5 billion deposit until 2028, a move expected to strengthen Pakistan's foreign exchange position and reduce immediate external debt repayment obligations.
According to the governor, Pakistan currently holds $8 billion in Saudi deposits. Of this amount, $3 billion was rolled over in April this year, while the remaining $5 billion has now also been extended.
He said the decision has reduced Pakistan's external financing needs for the current fiscal year to $21.5 billion. In addition, the country has received relief on external debt servicing, with interest payments declining by nearly $500 million.
Jameel Ahmad added that Pakistan has already repaid $2.2 billion in external loans during July, while the refinancing of a $1.3 billion commercial loan from China is expected next month, further supporting the country's foreign exchange reserves.
The State Bank governor also noted that over the past three years, the central bank has purchased a total of $28 billion from the interbank market, including nearly $9 billion during the last fiscal year, to strengthen Pakistan's foreign exchange reserves.
