Saudi Arabia has extended its $3 billion deposit with the State Bank of Pakistan for what Finance Minister Muhammad Aurangzeb called a “reasonable period.” He did not give a new maturity date.
Speaking to reporters at Parliament House, Aurangzeb said he had held a “very good meeting” with Saudi Finance Minister Mohammed Al-Jadaan. He said Pakistan had no reason to worry about how long the extension would last. He added that Islamabad does not currently need extra financial support from Riyadh, and described the strategic ties between the two countries as still strong.
Saudi deposits and reserve targets
Saudi Arabia has supported Pakistan’s finances for several years. In October 2021, it placed $3 billion with the central bank to strengthen foreign exchange reserves, and that deposit was rolled over several times. Riyadh added $2 billion in June 2023, bringing total Saudi deposits to $5 billion, and it also extended deferred-payment facilities for oil purchases. In April 2026, it announced a further $3 billion deposit.
Aurangzeb said Pakistan is working to raise its foreign exchange cover from three months of imports to four months by the end of the current fiscal year.
Eurobond repayments and a new $3 billion issue
Aurangzeb said Pakistan must repay about 1.5 billion euros in bonds every year. He said the government wants to ensure these payments do not create difficulties for any future administration. To stop repayments from clustering in a single year, the government structured a $3 billion eurobond issue with a five-and-a-half-year tranche, which pushes part of the burden into the next fiscal year.
The minister said Pakistan received an order book of $6 billion for the issue. If that demand materialises, it would provide liquidity support. If not, the country will keep seeking access to international markets through more eurobonds, panda bonds and dollar-settled, rupee-linked bonds.
Aurangzeb also said he met around 80 to 90 institutional investors in Bangkok, who were looking beyond Pakistan’s current International Monetary Fund programme. He said Pakistan is exploring financing with the US Export-Import Bank and the US International Development Finance Corporation. He described these as credit support for exporters and investors, not liquidity for the sovereign.
IMF board visit possible in December
Responding to a question, Aurangzeb said the IMF board could visit Pakistan in December, but no date has been finalised. He said he would share the date once it was confirmed.
