SBP receives $2bn from Saudi Arabia

April 16, 2026 (MLN): The State Bank of Pakistan (SBP) has received $2 billion from the Kingdom of Saudi Arabia, a day after Riyadh committed a fresh $3bndeposit to support Pakistan’s external financing position.

The inflow marks the first tranche of the pledged amount, with the remaining $1bn expected to be disbursed in the coming days, providing timely support to the country’s foreign exchange reserves.

The development follows Pakistan’s efforts to strengthen its reserve buffers to around $18bn equivalent to approximately 3.3 months of import cover by the end of the fiscal year under its programme with the International Monetary Fund.

In addition to the fresh commitment, Saudi Arabia has also agreed to extend its existing $5bn deposit for a longer term, removing the previous annual rollover condition and easing near-term external repayment pressures.

Finance Minister Muhammad Aurangzeb, speaking on the sidelines of the World Bank–IMF Spring Meetings 2026 in Washington, said the Saudi support would reinforce Pakistan’s external account and boost reserve adequacy at a critical juncture.

He reiterated that the government remains committed to maintaining sufficient foreign exchange buffers in line with IMF programme targets and market expectations, while ensuring timely servicing of all external obligations.

The minister also highlighted that Pakistan recently repaid its $1.4 billion Eurobond, underscoring the country’s improving repayment capacity and disciplined financing strategy.

Pakistan continues to pursue diversified external financing avenues, including the Global Medium-Term Note (GMTN) programme and a planned Panda Bond issuance, as part of efforts to strengthen access to international capital markets.

The Saudi financial support is expected to bolster investor confidence and provide stability to Pakistan’s balance of payments as the country advances its broader macroeconomic reform agenda.

Copyright Mettis Link News