Business Recorder
KARACHI: In a timely boost to Pakistan’s fragile external account position, Saudi Arabia has stepped in with financial support of USD 2 billion, offering much-needed relief amid mounting economic pressures. The State Bank of Pakistan (SBP) announced on Thursday that it has received funds of USD 2 billion from Ministry of Finance, Kingdom of Saudi Arabia in the value date of April 15, 2026. The inflow is expected to strengthen foreign exchange reserves and help stabilize the country’s balance of payments. Pakistan faces external debt repayments of around USD 5 billion in April 2026, adding to pressure on its foreign exchange reserves. The major component of these payments includes the successful repayment of a USD 1.4 billion Eurobond on April 8, while around USD 3.5 billion is due to be returned to the United Arab Emirates (UAE) in matured deposits during this month. READ MORE: Saudi Arabia backstop Pakistan with $3bn as UAE debt looms Therefore Pakistan was seeking financial support from the friendly countries like Saudi Arabia and Qatar to build the depleting foreign exchange reserves and mange the external debt payments. Overall Pakistan was making efforts for a total of USD 5 billion in financial assistance, with contributions from Saudi Arabia and Qatar. In addition, Pakistan has sought to enhance the oil supply facility on deferred payments. Pakistan has also requested Saudi Arabia for conversion of USD 5 billion in short-term, high-interest deposits into a 10-year long-term facility to provide long-term stability. Analysts said USD 2 billion funds were crucial for Pakistan to manage its external debt payments and support its balance of payments. With arrival of Saudi Funds, now Pakistan is in a better position to repay the UAE’s USD 3.5 billion debt payment. Meanwhile, Pakistan’s total liquid foreign exchange reserves declined by USD 1.3 billion to USD 20.524 billion as of April 10, 2026, compared to USD 21.895 billion recorded a week earlier, mainly due to external debt repayments. According to the State Bank of Pakistan (SBP), the State Bank’s foreign exchange reserves fell by USD 1.321 billion during the week, settling at USD 15.079 billion. The decline was largely attributed to the repayment of USD 1.426 billion against Pakistan’s sovereign Eurobond. Meanwhile, net foreign reserves held by commercial banks also witnessed a slight decrease, standing at USD 5.445 billion, down from USD 5.495 billion in the previous week. Pakistan on Thursday received USD 2 billion from Saudi Arabia and it will be reflected in the next weekly foreign exchange report. Copyright Business Recorder, 2026
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