Saudi Arabia has deferred the repayment of Pakistan’s $5 billion deposit for another three years, Governor State Bank of Pakistan (SBP) Jameel Ahmed said while talking to reporters on Wednesday.
The rollover reduces Pakistan’s immediate external debt repayment burden. Latest data reveals that Pakistan currently holds $8 billion in deposits from Saudi Arabia, including $3 billion that was rolled over in April this year.
As a result, Pakistan’s external financing requirement for the current fiscal year has declined to $21.5 billion.
The central bank also reported that interest payments on external debt have fallen by nearly $500 million.
During July alone, Pakistan has already repaid $2.2 billion in external loans. Sources said the refinancing of a $1.3 billion commercial loan from China is expected next month.
SBP earlier revealed that it purchased $9 billion from the open market in FY26 to strengthen forex reserves.
The central bank is targeting foreign exchange reserves of $20.2 billion by December 2026. This can only be achieved by improved external inflows, debt rollovers, and strategic market interventions.
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