The Saudi Fund for Development (SFD) has approved a one-year extension for its $3 billion deposit to Pakistan, providing crucial support for the country’s foreign exchange reserves and domestic economic stability. Official sources confirmed the extension just as the deposit’s initial term was set to expire.
The $3 billion deposit, currently held with the State Bank of Pakistan (SBP), was originally agreed upon in November 2021. The extension will help Pakistan maintain its reserve buffer and strengthen its economic position amid global financial uncertainties.
The positive external development aligns with robust domestic banking sector growth. According to the latest SBP report, Pakistan’s total bank deposits soared to a new historic high of Rs. 31,626 billion in March 2025.
This figure represents a substantial 11.7% year-on-year increase from Rs. 28,321 billion in March 2024, meaning an additional Rs. 3,305 billion entered the banking system over the year. Every month, deposits grew by 3.8% to Rs. 1,169 billion, bringing the total to Rs. 30,457 billion in February 2025.
The financial inflows are further supported by a record performance in the country’s external accounts. Pakistan posted a historic monthly current account surplus of $1.2 billion in March 2025, the highest such surplus ever recorded.
