Saudi Arabia has extended the term of its $3 billion deposit placed with Pakistan for another year to support the country’s economy, the State Bank of Pakistan (SBP) announced on Thursday.

In a statement, the central bank said: “The Saudi Fund for Development (SFD) on behalf of the Kingdom of Saudi Arabia has extended the term for the deposit of $3 billion maturing on December 8, 2025, for another year.”

The SBP said the fresh extension of the deposit’s term would help strengthen foreign exchange reserves and contribute to the country’s economic growth and development.

The amount has been placed with the SBP on behalf of the state, said the central bank.

It is pertinent to mention here that the $3 billion deposit was initially placed with the SBP in 2021 and subsequently rolled over since then.

The development came two months after Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman had agreed to launch an “Economic Cooperation Framework” based on the two countries’ shared economic interests.

During their meeting on the sidelines of the Future Investment Initiative (FII9) conference in Riyadh in October, the leaders had reaffirmed their mutual desire to strengthen trade and investment relations to serve their common interests.

It is pertinent to mention here that Pakistan is currently facing economic challenges, including pressure on its foreign exchange reserves, rising inflation, and a growing fiscal deficit.

Total liquid foreign reserves held by the country stood at $19.6 billion as of November 21, 2025, the central bank had said, adding that the net foreign reserves held by commercial banks were recorded at $5.04 billion.

“During the week ended on Nov 21, 2025, SBP’s FX reserves increased by $9 million to $ 14,560.7 million,” the central bank had added.