Saudi Arabia & Pakistan – (Special Correpondent/Web Desk) – The Saudi Arabia $5 billion deposit rollover Pakistan has received is a major boost for the country’s economy. This support will last for three years. Finance Minister Muhammad Aurangzeb shared this news on Wednesday. State Bank of Pakistan Governor Jameel Ahmed also spoke about it while talking to reporters outside Parliament House.
This rollover is good news for Pakistan. It will help lower the strain on the country’s foreign accounts. Pakistan is currently working hard to pay off its foreign debts this year.
Governor Ahmed explained that debt repayments have actually gone down. In the last fiscal year, Pakistan paid $26.5 billion. This year, that number has dropped to $21.5 billion. Lower interest rates played a big role in this drop.
Out of the total $21.5 billion, about $3.5 billion will go toward interest payments alone. The rest covers other loan repayments and dues.
The governor also broke down where this money is going. Around $12 billion is linked to deposits kept with the central bank. Another $3 billion covers commercial loans, which officials expect to refinance soon. The remaining amount, close to $7 billion, covers other foreign debts.
Here’s an interesting detail. Out of the $12 billion in total deposits, Saudi Arabia alone accounts for $8 billion. That shows just how important this partnership is for Pakistan’s economy.
Pakistan will need more rollovers in the coming months too. Deposits are due again in December 2026 and March 2027. Officials are already planning for these deadlines.
Looking back at July 2026, the first month of this fiscal year, Pakistan already paid $2.2 billion toward foreign debt. The good news is that pressure should ease going forward. From August 2026 to June 2027, repayments are expected to be lighter.
The State Bank has also been active in the currency market. Over the past three years, it purchased $28 billion from the interbank market. Just last year, it bought around $9 billion. This move helps build a safety cushion against unexpected economic shocks.
As for reserves, Pakistan held $22.6 billion in foreign exchange as of July 17, 2026. Of this, $17.2 billion sits with the State Bank. The remaining $5.4 billion is held by commercial banks across the country.
Earlier in July, reserves were even higher at $18.4 billion. But heavy repayments and other costs brought that number down slightly.
When asked about future challenges, Governor Ahmed mentioned the IMF’s outlook. The IMF expects higher debt servicing needs for the next fiscal year, 2027-28. However, officials said they will study this closer when the time comes.
For now, Pakistan feels confident about managing this year’s repayments. The central bank also plans to keep building its reserves. This step is important, especially if global fuel prices suddenly rise.
Overall, this Saudi support gives Pakistan some breathing room. It shows strong ties between the two countries. It also gives the government more time to strengthen the economy step by step.
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