Pakistan has received a fresh financial boost from Saudi Arabia, providing support to its foreign exchange reserves, the State Bank of Pakistan confirmed on Tuesday.

The central bank said it had received an additional $1 billion from Saudi Arabia’s finance ministry, marking the second tranche of a recently agreed $3 billion deposit package between the two countries.

Earlier, Pakistan had received the first tranche of $2 billion on April 15, completing the full transfer of the pledged amount.

A spokesperson for the Saudi finance ministry confirmed the arrangement, stating that the kingdom had agreed to the $3 billion deposit to help strengthen Pakistan’s balance of payments.

The financial support comes at a critical time, as Pakistan is due to repay $3.5 billion in debt to the United Arab Emirates this month — an amount equivalent to roughly 18% of its total foreign exchange reserves. Of this, $2 billion has already been repaid.

Officials say the Saudi assistance will help ease pressure on reserves and stabilise the economy.

Finance Minister Muhammad Aurangzeb had earlier disclosed in Washington that Riyadh pledged the $3 billion deposit, which has now been fully disbursed.

He also noted that the tenure of an existing $5 billion Saudi deposit has been extended by three years.

Unlike previous arrangements that required annual rollovers, the funds will now remain with Pakistan for a longer term.

Aurangzeb said Saudi Arabia had not only provided fresh financial support but also agreed to extend the duration of its earlier deposits, offering additional relief to the country’s economy.