The government of Saudi Arabia has rolled over $5 billion in cash deposit with Pakistan for three years, easing pressure significantly on country’s external repayments, reported 24NewsHD TV channel on Thursday.
According to the State Bank of Pakistan (SBP), the Saudi decision has brought gross external financing requirements down to $21.5 billion for the current fiscal year.
The Saudi rollover, extending the deposit's maturity until December 2028, marks a shift from the earlier one-year rollover cycle to a longer three-year structure, part of the government's revised strategy to delay repayments and create room for economic recovery.
Pakistan has taken a total of $8 billion in cash deposits from Saudi Arabia, including $3 billion received in April this year. Of this, the $5 billion portion had previously been rolled over annually before the Kingdom granted the three-year extension.
Separately, Saudi Arabia had provided $3 billion for three months, which matured this month and was further rolled over.
Pakistan now has to make external payments of $21.5 billion in the current fiscal year, out of which $18 billion are original loans, the State Bank said and added out of the $18 billion, $11 billion will be rolled over during the entire fiscal year.
There was a decrease of $500 million in interest payments on foreign loans, the State Bank said, adding external loans worth $2.2 billion had already been repaid in July.
Refinancing of $1.3 billion loan from China is expected next month.
The State Bank said it had also bought nine billion dollars from open market last fiscal year.
Foreign exchange reserves will exceed $20 billion by December 2026, the SBP added.
In April, Finance Minister Senator Muhammad Aurangzeb had confirmed that Saudi Arabia extended the $5 billion deposit for a longer period, without specifying its next maturity date.
Reporter Waqas Azeem