Saudi Arabia placed an additional $3 billion with the State Bank of Pakistan in April 2026, taking its total deposits with the central bank to $8 billion, Finance Minister Muhammad Aurangzeb told the National Assembly in a written reply.
The finance minister said the fresh $3 billion deposit was placed with the State Bank of Pakistan in April, while the existing $5 billion Saudi deposits were also rolled over. The additional placement and rollover provide continued support for Pakistan’s external financing requirements and strengthen the country’s access to an important source of external financial support.
Aurangzeb disclosed the details while responding to a question from National Assembly member Sharmila Faruqui. The clarification comes as Pakistan continues to manage its external financing position and maintain adequate foreign exchange support amid ongoing economic and trade-related developments.
Saudi Arabia has remained an important financial partner for Pakistan, with deposits held at the State Bank of Pakistan forming part of the country’s broader external financing arrangements. The fresh placement of $3 billion, alongside the rollover of the existing $5 billion, means the total Saudi deposits with the central bank now stand at $8 billion based on the figures provided by the finance minister. In his written reply, Aurangzeb also provided an update on Pakistan’s trade relationship with the United States. He said the US remained Pakistan’s largest export market, with Pakistani exports to the country reaching $5.9 billion during the 2025-26 fiscal year.
The minister said the 19 percent reciprocal tariff imposed by the US government in April 2025 was no longer in effect following a decision by the US Supreme Court invalidating the reciprocal tariffs. However, the United States subsequently imposed a 10 percent tariff on all countries under Section 122 of the Trade Act, 1974.
Aurangzeb further said the US government had proposed a 10 percent tariff on Pakistan following a Section 301 forced-labour investigation covering 60 countries. The same proposed tariff applied to Canada, Ecuador, the European Union, Indonesia and Mexico. A 12.5 percent tariff was proposed for the remaining 54 countries, including India and Bangladesh.
According to the finance minister, the US government was expected to finalise its findings by the end of July 2026. The developments have remained important for Pakistan because of the scale of its exports to the US market and the potential impact of tariff arrangements on the competitiveness of Pakistani products. Pakistan and the United States are also focusing on expanding bilateral trade, investment and commercial cooperation. Aurangzeb said information technology, mining and cotton were among the sectors receiving particular attention as both countries seek to strengthen commercial ties.
Negotiations on a bilateral agreement concerning reciprocal tariffs were also under way, according to the finance minister. Pakistan is seeking improved terms under the negotiations in an effort to preserve the competitiveness of its exports in the US market. The National Assembly was also informed about the government’s austerity measures. In a separate written response to a question from Mirza Ikhtiar Baig, Aurangzeb said the government had saved approximately Rs127.1 billion through additional austerity measures announced by the prime minister.
Of the reported savings, Rs2.1 billion came from reduced expenditure on petrol and diesel. The figures indicate that the government has also been pursuing expenditure controls alongside its efforts to manage external financing requirements and strengthen fiscal discipline. The disclosures on Saudi deposits, US trade and government savings provide an overview of several areas of Pakistan’s economic management, ranging from external financing support and export competitiveness to efforts aimed at reducing public expenditure.
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