ISLAMABAD: Saudi Arabia has rolled over $5 billion in deposits with Pakistan for another three years, providing significant support to the country’s external financing position, top government officials confirmed on Wednesday.
Finance Minister Muhammad Aurangzeb confirmed the development, while State Bank of Pakistan (SBP) Governor Jameel Ahmed said the rollover would help reduce pressure on Pakistan’s external account during the current fiscal year.
Speaking to reporters outside Parliament House after attending a Senate Standing Committee on Finance meeting, the SBP governor said Pakistan’s foreign debt servicing requirements have declined from $26.5 billion in FY2024-25 to $21.5 billion in FY2026-27, largely due to lower interest rates and improved financing arrangements.
Saudi deposits provide relief
Ahmed said Pakistan’s foreign debt servicing for the current fiscal year totals $21.5 billion, of which approximately $3.5 billion will be paid as interest.
He added that nearly $12 billion of the country’s external obligations consist of deposits held with the central bank, while around $3 billion are commercial loans expected to be refinanced. The remaining foreign debt repayments amount to roughly $7 billion.
According to the SBP governor, $8 billion of the deposits are from Saudi Arabia, with rollovers required for deposits maturing in December 2026 and March 2027.
Debt repayments ease after July
Ahmed said Pakistan repaid around $2.2 billion in external debt during July 2026, adding that repayment pressure is expected to remain lower from August 2026 through June 2027.
Foreign reserves and interbank purchases
The SBP governor said the central bank has purchased $28 billion from the interbank market over the past three years to strengthen Pakistan’s foreign exchange reserves.
During the last fiscal year alone, the SBP bought nearly $9 billion to build a financial buffer against external economic shocks.
Pakistan’s total foreign exchange reserves stood at $22.6 billion as of July 17, 2026, including:
- $17.2 billion held by the State Bank of Pakistan.
- $5.4 billion held by commercial banks.
Ahmed noted that SBP reserves had reached $18.4 billion on July 3, but later declined due to heavy external debt repayments and other financial obligations.
Outlook for FY2027-28
Responding to questions about the International Monetary Fund’s projections of higher debt servicing requirements in FY2027-28, the SBP governor said those estimates would be reviewed at a later stage.
He maintained that Pakistan remains comfortable with its external debt repayments during the current fiscal year and that the central bank will continue strengthening foreign exchange reserves to cushion the economy against potential external shocks, including any sharp rise in global oil prices.
