Pakistan’s external sector has come under less pressure after Saudi Arabia extended the maturity of a $5 billion cash deposit by three years, SBP Governor Jameel Ahmad said on Wednesday.

The governor said the Saudi rollover has significantly reduced the country’s near-term external financing burden, while the central bank’s foreign exchange purchases have helped strengthen Pakistan’s reserve position and improve external account stability.

The central bank said Pakistan currently holds $8 billion in Saudi deposits, including $3 billion in fresh deposits received in April this year.

Outlining Pakistan’s external financing requirements for the current fiscal year, SBP officials said the country is expected to make $21.5 billion in external payments, of which $18 billion represents principal debt repayments.

The central bank added that $11 billion of these repayments are expected to be rolled over during the fiscal year.

It also noted that interest payments on foreign debt have declined by $500 million compared with the previous period.

Providing an update on recent repayments and expected inflows, an SBP spokesperson said Pakistan had successfully repaid $2.2 billion in external loans during July.

In addition, the country expects $1.3 billion in refinancing from China next month.

The SBP further said it purchased $9 billion from the open market during the last fiscal year, helping strengthen the country’s foreign exchange position.

Expressing optimism about Pakistan’s economic outlook, central bank officials said they expect the country’s total foreign exchange reserves to exceed $20 billion by December 2026, supported by ongoing trade and financial measures.