The Saudi rollover of a $3 billion deposit has given Pakistan fresh breathing room on its external payments. Finance Minister Muhammad Aurangzeb confirmed on Wednesday, November 4, 2026, that Saudi Arabia has extended the deposit for an appropriate period after talks with his Saudi counterpart.
Speaking to reporters at Parliament House and later to the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, the minister said he had a very good meeting with the Saudi finance minister. He added that Pakistan does not currently need any additional financing from the kingdom.
What the Saudi Rollover Covers
The $3 billion facility was arranged in April 2026, when Pakistan faced about $3.5 billion in repayments to the United Arab Emirates. Instead of returning the money now, Pakistan can keep it in its foreign exchange reserves. Saudi Arabia had earlier extended a separate $5 billion deposit with the State Bank of Pakistan until 2028.
| Saudi support | Status |
|---|---|
| $3 billion additional deposit (April 2026) | Rolled over for a further period |
| $5 billion deposit with SBP | Extended until 2028 |
| New financing request | Not needed, says finance minister |
US $10bn Facility Still Uncertain
The Saudi rollover comes as prospects fade for a proposed $10 billion Exchange Stabilisation Support Facility that Pakistan requested from the United States. Aurangzeb said Pakistan had submitted the request but would continue its financing plan even if the facility does not materialise. The government is also exploring arrangements with the US Export-Import Bank and the US Development Finance Corporation to support American exporters and investors in Pakistan.
Pakistan’s External Position at a Glance
- Foreign exchange reserves cover about three months of imports, according to the finance minister.
- Pakistan raised $3 billion through an international bond in early September, which drew orders of about $6 billion.
- The government plans more Eurobond and Panda bond issues, plus rupee-linked bonds settled in dollars, to diversify funding.
- The IMF Executive Board is expected to review Pakistan’s $7 billion programme in December.
- Public debt has fallen from 75.1% of GDP in FY2023 to 68.6% in FY2026, the committee was told.
The minister said external debt had grown from around $45 billion about a decade ago to roughly $100 billion now, but the yearly increase has slowed to about $1 billion in recent years. The government is replacing costly short-term borrowing with longer-term financing to reduce refinancing risk.
How the Saudi Rollover Affects You
A stable reserve position helps keep the rupee steady, which matters for prices of imported goods such as fuel, cooking oil and medicines. It also reduces pressure on the government to seek emergency loans at high costs. For businesses, it lowers the risk of import restrictions that hit Pakistan during past balance-of-payments crises.
Background: Saudi Arabia’s Financial Support
Saudi Arabia has been one of Pakistan’s most important financial partners for decades, providing cash deposits and deferred oil payment facilities during difficult periods. Bilateral deposits from Saudi Arabia, China and other friendly countries are also a key part of the financing plan agreed with the IMF, which relies on these partners rolling over their money rather than withdrawing it.
What Happens Next
With the Saudi rollover secured, attention now shifts to the IMF board review in December, the next tranche under the $7 billion programme and the government’s plans for new bond issues in international markets.
For official updates, visit the Finance Division website.
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