Saudi Arabia defers Pakistan's $5bn loan repayment for 3 years

MG News | July 30, 2026 at 09:28 AM GMT+05:00

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July 30, 2026 (MLN): Pakistan currently holds $8bn in deposits from Saudi Arabia, while Riyadh has deferred repayment of a $5bn loan for a further three years.

The rollover of the $5bn facility has eased immediate repayment pressure on Pakistan's external obligations, providing near-term relief to the country's foreign exchange position, according to the State Bank, as per media reports.

Pakistan’s external financing needs have fallen to $21.5 billion this year.

The interest payment burden on foreign loans has also declined by around half a billion dollars.

Pakistan has repaid $2.2 billion in loans in July.

The disclosures come amid continued financial support from Saudi Arabia, which has maintained deposits with Pakistan as part of broader bilateral economic assistance.

The Kingdom had earlier committed an additional $3bn in deposits to Pakistan in April, a move that provided a significant boost to the country's external financing position.

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