Saudi Arabia on Thursday extended the $3 billion deposit it holds with the State Bank of Pakistan for another year.

The funds, which come from the Saudi Development Fund, originally set to mature today (Thursday), are managed by the State Bank of Pakistan (SBP).

The Saudi move will provide crucial support in maintaining stability in the country’s foreign exchange reserves.

According to sources, the $3 billion deposit, which forms part of Pakistan’s foreign exchange reserves, plays a key role in supporting the country’s balance of payments and overall financial stability.

Officials said the extension ensures that Pakistan will not face immediate repayment pressures and will help sustain ongoing economic activities.

The deposit has been held at the State Bank of Pakistan since Saudi Arabia initially provided it in 2021 under a formal agreement.

The Saudi Development Fund’s approval for another year reinforces financial support for Pakistan amid ongoing economic challenges.