ISLAMABAD – Saudi Arabia has agreed to roll over $5 billion in loans provided to Pakistan for three years, a move expected to reduce immediate pressure on the country’s external payments, according to the State Bank of Pakistan (SBP). Pakistan currently holds $8 billion in deposits from Saudi Arabia, including $3 billion received in April this year. Pakistan has already repaid around $2.2 billion in external debt during July, while refinancing of a $1.3 billion commercial loan from China is expected next month, according to the central bank. Pakistan has set a target of increasing its foreign exchange reserves to $20.2 billion by December 2026. The extension of Saudi financial support is being viewed as a significant step toward maintaining stability in Pakistan’s balance of payments and managing upcoming external financing needs.