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Pakistan Secures Final KSA Support Tranche to Boost Foreign Reserves
(MENAFN) Pakistan’s central bank announced on Tuesday that it has received the final installment of Saudi Arabia’s $3 billion financial assistance package, a move intended to strengthen the country’s foreign exchange reserves.
In a statement published on the social media platform X, the State Bank of Pakistan confirmed that $1 billion was transferred on April 20 by Saudi Arabia’s Finance Ministry, completing the agreed support arrangement.
“This is the second tranche of the $3 billion deposit recently agreed by the Kingdom of Saudi Arabia. First tranche of $2 billion has already been received in the value date of 15 April 2026,” the brief statement added.
Officials noted that this latest inflow comes in addition to Saudi Arabia’s earlier decision to extend the maturity of an existing $5 billion deposit, which is expected to further support financial stability in Pakistan.
Finance Minister Muhammad Aurangzeb previously said the arrangement provides added breathing room for the economy. Meanwhile, Pakistan also repaid $2.4 billion to the United Arab Emirates last week as part of its external debt obligations, with another $1 billion payment expected within the month.
Reports have indicated that Saudi Arabia and Qatar may jointly contribute around $5 billion more in support to help Islamabad meet upcoming external payment pressures by June.
Despite these inflows, Pakistan’s foreign exchange reserves remain under strain due to high import costs, with officials warning that reserves could weaken further without continued financial assistance.
Current total liquid reserves stand at $20.5 billion, including $15 billion held by the central bank and $5.44 billion in commercial banks.
In a statement published on the social media platform X, the State Bank of Pakistan confirmed that $1 billion was transferred on April 20 by Saudi Arabia’s Finance Ministry, completing the agreed support arrangement.
“This is the second tranche of the $3 billion deposit recently agreed by the Kingdom of Saudi Arabia. First tranche of $2 billion has already been received in the value date of 15 April 2026,” the brief statement added.
Officials noted that this latest inflow comes in addition to Saudi Arabia’s earlier decision to extend the maturity of an existing $5 billion deposit, which is expected to further support financial stability in Pakistan.
Finance Minister Muhammad Aurangzeb previously said the arrangement provides added breathing room for the economy. Meanwhile, Pakistan also repaid $2.4 billion to the United Arab Emirates last week as part of its external debt obligations, with another $1 billion payment expected within the month.
Reports have indicated that Saudi Arabia and Qatar may jointly contribute around $5 billion more in support to help Islamabad meet upcoming external payment pressures by June.
Despite these inflows, Pakistan’s foreign exchange reserves remain under strain due to high import costs, with officials warning that reserves could weaken further without continued financial assistance.
Current total liquid reserves stand at $20.5 billion, including $15 billion held by the central bank and $5.44 billion in commercial banks.
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