The State Bank of Pakistan (SBP) has confirmed that Pakistan received $1 billion from the Kingdom of Saudi Arabia on Tuesday under a previously agreed financial arrangement.
In an official statement, the central bank said the funds were transferred on the value date of 20 April 2026 from the Saudi Ministry of Finance. This disbursement represents the second tranche of a $3 billion deposit facility extended by Riyadh to Pakistan, with the first tranche of $2 billion received last week.
The inflows come after Prime Minister Shehbaz Sharif’s recent visit to Saudi Arabia aimed at strengthening diplomatic engagement and promoting regional stability. Following the visit, Saudi Arabia pledged an additional $3 billion in deposits for Pakistan and extended its existing $5 billion support facility for another three years.
The development takes place amid growing pressure on Pakistan’s external financing position. The country is also expected to repay a $3.5 billion loan to the United Arab Emirates this month, raising concerns over short-term reserve stability and potential strain on International Monetary Fund (IMF) programme targets.
Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, covering nearly three months of imports. However, upcoming repayments and external obligations have added pressure to the country’s balance-of-payments position.
In March, Pakistan was unable to secure a rollover of the UAE loan facility, marking the first such instance in seven years and highlighting ongoing challenges in external financing.
Despite pressures, Pakistan’s external account stabilisation efforts continue under IMF-supported reforms, although analysts caution that vulnerabilities remain due to global energy price volatility and tight international financial conditions.