Saudi Arabia has extended the term of its $3 billion deposit with Pakistan for another year, providing crucial support to the country’s economy, the State Bank of Pakistan (SBP) announced on Thursday.

The central bank stated that the Saudi Fund for Development (SFD), on behalf of the Kingdom of Saudi Arabia, has extended the term of the deposit maturing on December 8, 2025, by an additional year.

This extension is expected to strengthen Pakistan’s foreign exchange reserves and support economic growth and development.

The deposit was initially placed in 2021 and has been rolled over since then, reflecting the longstanding economic partnership between the two nations.

The decision follows an agreement between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman to launch an “Economic Cooperation Framework,” emphasizing mutual economic interests and a shared commitment to strengthening trade and investment ties.

Pakistan continues to face economic challenges, including pressure on foreign exchange reserves, rising inflation, and a growing fiscal deficit.

As of November 21, 2025, the country’s total liquid foreign reserves stood at $19.6 billion, with $5.04 billion held by commercial banks.

During the week ending November 21, the SBP’s foreign exchange reserves increased by $9 million, reaching $14.56 billion.

This renewed support from Saudi Arabia underscores international solidarity with Pakistan and provides a vital boost to the country’s economic stability, helping safeguard livelihoods and promote sustainable growth.