The State Bank of Pakistan (SBP) announced on Wednesday that Saudi Arabia has agreed to extend the $3 billion deposit to Pakistan for an additional year. The extension reflects the kingdom’s ongoing support for Pakistan and aims to bolster the country’s foreign exchange reserves and economic growth. The initial deposit agreement was signed in November 2021, and the amount was placed in SBP’s reserves on behalf of the state. This extension follows a previous directive from Saudi Crown Prince Mohammed Bin Salman to study increasing the deposit amount to $5 billion, as well as an additional $2 billion deposit made in July. The extension is expected to strengthen Pakistan’s position in future negotiations with the IMF for the staggered release of $3 billion in funding under a standby agreement. The IMF has made securing external financing a condition for the agreement struck with Pakistan in July, and financing from Saudi Arabia and other countries was critical in finalizing the deal. The remaining $1.1 billion from the IMF will require further talks in the coming months before the programme comes to an end around March.