Pakistan’s central bank announces extension of $3 billion Saudi deposit for another year

A foreign currency dealer counts US dollar notes at a currency market in Karachi on July 19, 2022. (AFP/File)
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Updated 30 November 2023
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Pakistan’s central bank announces extension of $3 billion Saudi deposit for another year

  • Saudis extended the financial support in November 2021 under an agreement with State Bank of Pakistan
  • The deposit’s rollover is expected to help Pakistan with its gross financing needs in the current fiscal year

ISLAMABAD: Pakistan’s central bank on Wednesday announced the Saudi decision to extend the term of a $3 billion deposit for yet another year to help the economy of the South Asian state which has been striving for increased foreign investment.

The Saudi authorities extended the financial support in November 2021 under an agreement signed between the State Bank of Pakistan (SBP) and the Saudi Fund for Development (SFD) to support Pakistan’s dwindling foreign exchange reserves.

The SBP also announced the deposit’s extension last year, saying that Saudi Arabia had agreed to continue its financial assistance to Pakistan.

“The Saudi Fund for Development (SFD) on behalf of the Kingdom of Saudi Arabia has extended the term for the deposit of USD 3 billion maturing on 05 December 2023 for another one year,” the central bank said in a brief statement.

“The extension of the term of the deposit is a continuation of the support provided by the Kingdom of Saudi Arabia to the Islamic Republic of Pakistan, which will help to maintain the foreign currency reserves of Pakistan and contribute to the economic growth of the country,” it added.

The announcement comes at a time when Pakistan’s interim Prime Minister Anwaar-ul-Haq Kakar is on a week-long visit to the Gulf region where the country has signed multibillion-dollar deals with the United Arab Emirates and Kuwait.

Earlier this year, Pakistan managed to secure a short-term loan from the International Monetary Fund (IMF) amounting to $3 billion in a move that was widely viewed as an attempt to stave off sovereign debt default.

The international lender recently conducted the country’s economic review under the same facility and is likely to release the next tranche of $700 million in December.

The IMF has also raised concerns about Pakistan’s external financing.

The Saudi decision to extend the term of its deposit with the SBP is likely to help Pakistan’s economy in the same context.

“The $3 billion rollover is an important move in securing $25 billion in gross financing needs estimated by Pakistan for FY-24,” former adviser to the finance ministry, Khaqan Najeeb, explained the significance of the development while speaking to Geo News.


Pakistan’s president defends ongoing strikes in Afghanistan, urges Kabul to dismantle militants

Updated 02 March 2026
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Pakistan’s president defends ongoing strikes in Afghanistan, urges Kabul to dismantle militants

  • Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday
  • Pakistan’s military says it is only targeting Afghan military installations to avoid civilian casualties

ISLAMABAD: Pakistan’s president on Monday defended his country’s ongoing military strikes in neighboring Afghanistan, saying Islamabad tried all forms of diplomacy before targeting militants operating from Afghan territory, and called on the Taliban government in Kabul to disarm groups responsible for attacks in Pakistan.

Pakistan earlier said it is in “open war” with Afghanistan, alarming the international community. The border area remains a stronghold for militant organizations including Al-Qaeda and the Daesh (Islamic State) group.

“(The Afghan Taliban) must choose to dismantle the terror groups that survive on conflict and its war economy,” Asif Ali Zardari said during a speech to lawmakers, adding that “no state accepts serial attacks on its soil.”

Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday. Since then, Pakistan has carried out operations along the border, with Information Minister Attaullah Tarar claiming the killing of 435 Afghan forces and the capture of 31 Afghan positions.

Kabul has denied such claims.

In Afghanistan, the deputy government spokesman Hamdullah Fitrat said Pakistan’s military fired mortar shells at a refugee camp in eastern Kunar province, killing three children and injuring three others.

Afghanistan’s defense ministry said Afghan forces carried out strikes targeting a Pakistani military facility near Paktia province, causing “substantial losses and heavy casualties.”

Pakistan’s military did not respond to questions. It has said Pakistan is only targeting Afghan military installations to avoid civilian casualties.

Pakistan has witnessed a surge of violence in recent months and blames it on the outlawed Pakistani Taliban, known as Tehreek-e-Taliban Pakistan or TTP. It operates both inside Pakistan and from Afghan territory.
Islamabad accuses Afghanistan’s Taliban government of providing safe havens for the TTP, which Kabul denies.

The latest cross-border fighting ended a ceasefire brokered by Qatar and Turkiye in October. The two sides failed to reach a permanent agreement during talks in Istanbul.

Zardari reiterated Pakistan’s call for talks, saying, “We have never walked away from dialogue.”

The Pakistani leader again accused Afghanistan of acting as a proxy for India by sheltering militant groups.

“Stop being used by another country as a battlefield for their ambitions,” he said.

Zardari cited a recent report from the United Nations Security Council’s monitoring team that described the presence of militant groups in Afghanistan as an extra-regional threat.