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ISLAMABAD: Saudi Arabia agreed Friday to extend the maturity of a $3 billion deposit held at Pakistan&#39;s central bank, delivering a fresh boost to Islamabad&#39;s foreign exchange reserves. According to a post on X (Twitter), the Ministry of Finance reported that the Saudi Fund for Development and the State Bank of Pakistan signed the extension agreement on the sidelines of the World Bank-IMF Spring Meetings in Washington. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowtransparency="true" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 672px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=2044950727072809149&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F5340%2F&sessionId=24a6d90f2e85ae93786957329068a0fc0d5d343d&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" data-tweet-id="2044950727072809149"></iframe></div></div> Finance Minister Muhammad Aurangzeb and Pakistan&#39;s Ambassador to the United States Rizwan Saeed Sheikh witnessed the signing. SFD Chief Executive Sultan bin Abdulrahman Al-Marshad signed on behalf of the Saudi fund. State Bank of Pakistan Governor Jameel Ahmad signed for the central bank. The ministry said the extension reflects the &quot;strong and longstanding economic partnership&quot; between Pakistan and Saudi Arabia and will further support Pakistan&#39;s external sector stability. Friday&#39;s agreement comes amid a broader shift in the two countries&#39; financial relationship. In April 2024, Pakistan and Saudi Arabia agreed to expedite a $5 billion investment package representing a transition from loans to equity stakes in Pakistani projects, according to the Ministry of Foreign Affairs. In October 2024, the two sides signed 34 business agreements worth $2.8 billion across agriculture, energy, and information technology, as per AFP. Saudi-based ACWA Power has committed to renewable energy projects worth $2 billion in Pakistan, per the Federation of Pakistan Chambers of Commerce and Industry. On October 28, 2025, Prime Minister Shehbaz Sharif and Crown Prince Mohammed bin Salman launched the Economic Cooperation Framework to steer the relationship toward joint ventures in mining, information technology, and tourism. The two countries also signed a Mutual Defence Pact in September 2025. Saudi Arabia&#39;s financial support for Pakistan spans decades. Following Pakistan&#39;s 1998 nuclear tests, Saudi Arabia cushioned the impact of international sanctions through deferred oil payments, per Federation of Pakistan Chambers of Commerce and Industry (FPCCI). After the 2005 earthquake in northern Pakistan, Saudi Arabia delivered an aid package of $573 million, and during the 2010 floods became Pakistan&#39;s largest international donor, pledging $105 million, according to FPCCI. Total trade between the two countries stands at $3.5 billion, with Pakistan&#39;s imports from Saudi Arabia at $3.2 billion against exports of just $316.3 million, according to FPCCI. Saudi Arabia remains Pakistan&#39;s largest source of remittances. Over 2.7 million Pakistani workers reside in the Kingdom, generating approximately $9 billion annually, roughly 25% of Pakistan&#39;s total global inflows.

Minister for Finance and Revenue Muhammad Aurangzeb witnesses the signing of an agreement in Washington extending a $3 billion deposit between the Saudi Fund for Development and the State Bank of Pakistan on April 17, 2026. (Ministry of Finance/X)

Economy

Saudi Arabia extends maturity of $3 billion deposit at Pakistan’s central bank as officials sign agreement in Washington during World Bank-IMF Spring Meetings.

Saudi Arabia extends $3B deposit to bolster Pakistan's economy

ISLAMABAD: The International Monetary Fund (IMF) reached a staff-level agreement with Pakistan on Thursday, unlocking roughly $1.2 billion in financing pending board approval, the international financial institute said Friday. According to a statement released by IMF Communications Department, the agreement concludes the third review of a 37-month Extended Fund Facility and the second review of a 28-month Resilience and Sustainability Facility arrangement. Pakistan would draw approximately $1 billion from the EFF and $210 million from the RSF once the board signs off. Cumulative payouts across both programs would then stand at around $4.5 billion. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowfullscreen="true" style="position: absolute; visibility: hidden; width: 0px; height: 0px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=2037723932879716834&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F4953%2F&sessionId=e1b7b50440a792e14968d3461c374ec3c99eddd9&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px"></iframe></div><blockquote class="twitter-tweet">IMF Reaches Staff-Level Agreement on the Third Review for the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the Second Review for 28-month Arrangement Under the Resilience and Sustainability Facility (RSF) &ndash; Pakistan <a href="https://t.co/hYPsALIpbn" style="color: rgb(0, 115, 230);">https://t.co/hYPsALIpbn</a>&mdash; Ministry of Finance, Government of Pakistan (@Financegovpk) <a href="https://twitter.com/Financegovpk/status/2037723932879716834?ref_src=twsrc%5Etfw" style="color: rgb(0, 115, 230);">March 28, 2026</a></blockquote></div> The deal remains subject to approval by the Fund&#39;s Executive Board. Iva Petrova led the IMF delegation during in-person talks with Pakistani officials in Karachi and Islamabad from Feb. 25 to March 2. Discussions continued remotely in the weeks that followed. The Fund described Pakistan&#39;s near-term economic outlook as improving. Output picked up pace in the first part of the current fiscal year, following a broader rebound in FY25. Price pressures and the trade balance have stayed manageable, and the country&#39;s foreign reserve position has continued to recover, the IMF noted. The Fund warned that ongoing conflict in the Middle East poses the most immediate threat to that trajectory. Swings in global energy costs and tightening international financing conditions could reignite inflation and drag on output. According to the IMF, Pakistan&#39;s fiscal targets call for a primary surplus of 1.6% of GDP in FY26, rising to an underlying primary balance of 2% of GDP in FY27. Hitting those marks will require widening the revenue base and tightening control over public spending. The Fund said health, education, and social assistance allocations are also set to increase. The country&rsquo;s Federal Board of Revenue (FBR) has launched an internal overhaul to improve tax collection and enforcement. Changes underway include tougher audit procedures, a broader rollout of electronic invoicing, and closer monitoring of production activity. A newly created Tax Policy Office has been tasked with drafting a longer-term reform roadmap aimed at keeping the policy environment stable without sacrificing revenue. Similarly, the State Bank of Pakistan (SBP) has signaled it will hold policy rates at elevated levels for as long as needed to keep inflation within its official band. The IMF said the local currency should be allowed to move freely in response to external pressures. A market-determined exchange rate, the Fund said, remains the country&#39;s first line of defense against balance of payments stress,&nbsp;particularly given potential fallout from the Middle East conflict. Pakistan&#39;s power sector remains a central focus of the program. Authorities have committed to closing the gap between the actual cost of electricity and what consumers are charged. The IMF said this structural imbalance is the root cause of the country&#39;s persistent circular debt problem. The Fund reported that Pakistan authorities are also working to strengthen the Benazir Income Support Program, the country&rsquo;s flagship federal social safety net. Measures include inflation-adjusted cash transfers, expanded coverage, and improved payment systems. Under the RSF, Pakistan has moved ahead on reducing transport-related emissions and building regulatory infrastructure to track and manage climate-related financial risks. Upcoming commitments include reinforcing water infrastructure, improving accounting for climate-relevant public expenditure, and establishing a formal framework for financing disaster response.

A view of the International Monetary Fund headquarters building in Washington, DC on October 20, 2024 ahead of the 2024 IMF/World Bank Annual Meetings. (AFP)

The deal remains subject to approval by the Fund's Executive Board.

IMF clears $1.2 billion for Pakistan in dual program review

Faraz Saeed

LAHORE: Pakistan recorded a current account surplus of $427 million in February, marking its strongest monthly performance since March last year, according to data released by the State Bank of Pakistan.&nbsp; The latest figure also represents the second consecutive monthly surplus, following January&rsquo;s $60 million surplus, signalling a gradual improvement in the country&rsquo;s external position. Despite the recent gains, the broader picture remains mixed. During the first eight months of the current fiscal year (July-February FY26), Pakistan posted a cumulative current account deficit of $700 million, sharply contrasting with the $479 million surplus recorded in the same period last year. Officials, however, see the recent trend as encouraging. The finance minister&rsquo;s advisor, Khurram Shehzad, described February&rsquo;s numbers as a sign of strengthening fundamentals, pointing to robust remittance inflows, growth in value-added exports, and controlled import expansion as key drivers behind the improvement. Analysts echo this view, noting that higher remittances and a reduction in the income deficit played a crucial role in offsetting the persistent trade gap. The narrowing of external imbalances has also helped ease pressure on foreign financing needs. While risks remain, particularly due to ongoing regional tensions, the back-to-back surpluses suggest that Pakistan&rsquo;s external account is stabilizing.&nbsp; With adequate buffers in place, the development is being seen as a step toward sustainable economic recovery and a potential boost to investor confidence.

A stock broker walks past a digital board showing share prices at the Pakistan Stock Exchange (PSX) in Karachi on March 10, 2026. (AFP)

Business

Pakistan posted back-to-back current account surpluses, led by strong remittances and controlled imports, signalling improving external stability despite a year-to-date deficit.

Pakistan’s current account surplus hits 11-month high in February

Malik Waqar Ahmed

ISLAMABAD: More than 30 presidents of women&#39;s chambers of commerce gathered in the capital for a two-day conference aimed at expanding opportunities for women&nbsp;<a href="https://www.pakistantv.com/article/pakistan-offers-major-investment-opportunities-for-us-entrepreneurs-ambassador-says" target="_blank" style="font-family: Arial,Helvetica,sans-serif;" rel="noopener noreferrer">entrepreneurs</a>&nbsp;across Pakistan. The 4th All Pakistan Women Chambers Presidents International Conference centered on capacity building, financial inclusion, and market access for women-led enterprises. It was organized by the Islamabad Women&#39;s Chamber of Commerce and Industry. Special Assistant to the Prime Minister for Industries and Production Haroon Akhtar Khan inaugurated the event, stating that women are <a href="https://www.pakistantv.com/article/pakistans-powerhouses-the-women-who-owned-2025" target="_blank" style="font-family: Arial,Helvetica,sans-serif;" rel="noopener noreferrer">reshaping Pakistan</a>&#39;s economy by entering new sectors, creating jobs, and strengthening household incomes. &quot;Women-led enterprises are no longer confined to micro or informal activities,&quot; the special assistant said. &ldquo;They are increasingly visible in manufacturing, services, information technology, agribusiness, and exports.&rdquo; Haroon Khan mentioned that this shift is altering market dynamics and how families cope with inflation, rising energy costs, and slow growth. He observed a clear move from survival-based businesses to growth-oriented firms led by educated women utilizing digital platforms and formal banking channels. The special assistant highlighted that official data indicate increased women&#39;s participation in small and medium enterprises over the past decade. However, policy gaps and limited access to finance still restrict scaling and productivity. He emphasized unlocking women&#39;s potential as essential for maintaining economic growth under fiscal pressure. Women entrepreneurs are helping diversify exports through value-added products in textiles, food processing, and digital services, reducing dependency on a few commodities and bolstering foreign exchange earnings. Haroon Khan pointed to recent initiatives aimed at easing business registration, expanding credit guarantees, and connecting women-owned firms to public procurement. He noted that firms led by women tend to be more resilient during economic shocks. He also acknowledged that despite policy announcements, access to affordable credit remains limited. Chamber representatives reported that high interest rates, collateral requirements, and delays in bank approvals continue to exclude many capable businesses. The Vice President of the Islamabad Women Chamber of Commerce and Industry, Rabia Farhan, mentioned that the country&rsquo;s central bank&#39;s loan programs are currently paused. Previously, a special women&#39;s grant with only a 5% markup was available. <img src="https://paktv-assets-7d41fab8.s3.eu-west-2.amazonaws.com/uploads/565084e1-6c1e-4bfd-86ab-7f2912791d7e-80463ddd-6664-419d-a8c0-8e715ce96a4d.jpg" alt="80463ddd-6664-419d-a8c0-8e715ce96a4d.jpg" class="fr-fil fr-dib"><figcaption class="caption-cover-image text-sm text-gray-600 italic">A participant speaking at the 4th All Pakistan Women Chambers Presidents International Conference held in Islamabad, January 19, 2026.</figcaption> Meanwhile, Naima Ansari, Senior Vice President of the Pakistan-Azerbaijan Joint Chamber of Commerce and Industry, said the Islamabad location offers direct access to government agencies and regulatory bodies, facilitating networking opportunities. Shabista Bakhtiyar, President of the Women&rsquo;s Chamber of Commerce and Industry in Karachi, discussed the importance of safe workplaces and increased participation in policy-making. &quot;Women need comfortable, safe, and healthy environments,&quot; Bakhtiyar said. &quot;They require spaces where they can work freely and be more deeply involved in policy-making.&quot; Other speakers included Islamabad Women Chamber of Commerce &amp; Industry Founder President Samina Fazil, Azerbaijan Ambassador Khazar Farhadov, Securities and Exchange Commission Commissioner Muzaffar Mirza, Deputy Director DGTO Pir Shah Gul, and Secretary General of UBG Zafar Bakhtawri.

More than 30 women chambers presidents met in Islamabad to discuss capacity building, financial inclusion and market access, highlighting women-led enterprises’ growing role in Pakistan’s economy amid economic challenges nationwide.

Women entrepreneurs target exports and tech at Islamabad summit

ISLAMABAD: Workers&rsquo; remittances to Pakistan rose 9% year-on-year to $3.19 billion in November 2025, reflecting continued inflows from key destinations including Saudi Arabia, the United Arab Emirates, the United Kingdom, and European countries, according to data released by the State Bank of Pakistan.&nbsp;The latest figures show that remittances exceeded the $2.92 billion received in November 2024. However, inflows declined 7% month-on-month from October 2025, when overseas Pakistanis sent $3.42 billion.&nbsp;Saudi Arabia remained the largest source of remittances in November, sending $753 million, followed by the UAE with $675 million and the UK with $481 million.&nbsp;Remittances from EU countries rose 29% year-on-year to $417 million, while inflows from the United States stood at $277 million.&nbsp;During the first five months of the current fiscal year (5MFY26), total remittances reached $16.14 billion, up 9% compared to $14.77 billion in the same period of FY25.&nbsp;Remittances remain a key pillar of Pakistan&rsquo;s external account, providing crucial support amid tight foreign exchange reserves and elevated financing needs.

Saudi Arabia remains the largest source of remittances in November, sending $753 million, followed by the UAE with $675 million and the UK with $481 million.

Pakistan remittances up, reach $3.19B in November

Staff Reporter

LAHORE: The State Bank of Pakistan (SBP) has launched a new digital investment platform, InvestPak, enabling individuals and corporations to invest in government securities entirely online.&nbsp;The initiative forms part of the central bank&rsquo;s broader strategy to modernize Pakistan&rsquo;s financial infrastructure and accelerate the shift toward a cashless economy.&nbsp;According to the SBP, InvestPak digitizes the entire investment process for customers holding rupee accounts with banks, primary dealers (PDs), and microfinance banks (MFBs). Through the web portal, users can open Investor Portfolio of Securities (IPS) accounts, submit bids in primary auctions, and trade government securities in the secondary market without visiting a branch.&nbsp;&ldquo;All banks are mandated to facilitate customer registration on the portal,&rdquo; the SBP said in a circular. &ldquo;Microfinance banks are encouraged to extend the same facility to their clients. All financial institutions must ensure efficient onboarding and a seamless user experience.&rdquo;&nbsp;The system allows users to link and operate multiple rupee and IPS accounts across different financial institutions via a single login, with registration requests required to be processed within two working days.&nbsp;As of June 30, 2025, total investment in government securities stood at Rs46.566 trillion, with scheduled banks holding Rs38.7 trillion (83%) and corporates Rs7.856 trillion (17%). The SBP expects that opening access to individual investors through InvestPak will broaden participation, deepen the domestic debt market, and diversify the investor base.&nbsp;The launch comes as the central bank advances a comprehensive digitalization roadmap. In September, the National Assembly&rsquo;s finance committee was informed that all federal and provincial government payments are to be fully digitized by June 2026, including transactions of state-owned enterprises.&nbsp;SBP Governor Jameel Ahmad told the committee that the central bank is taking &ldquo;comprehensive steps to promote a secure, inclusive, and technology-driven payments ecosystem,&rdquo; noting that 88% of retail transactions in Pakistan are now digital&mdash;a major shift reflecting the rapid uptake of electronic payments.&nbsp;Pakistan&rsquo;s digital financial infrastructure currently supports 226 million bank accounts and 46 million Raast IDs. To strengthen consumer protection, the SBP has introduced a bank liability framework and a mandatory two-hour cooling-off period for digital transfers to mitigate fraud.&nbsp;The digital banking landscape is also expanding. Mashreq Bank recently became the first international bank to launch full digital operations in Pakistan, rolling out nationwide services in 12 months&mdash;significantly faster than the global average of five years. Five additional digital banks have received in-principle approval to operate.&nbsp;To promote innovation, the SBP has also backed new digital payment solutions. Governor Ahmad recently inaugurated the JazzCash Experience Lounge, featuring facial and palm biometrics, wearables, and QR-based payment technologies.&nbsp;The SBP said InvestPak represents a major step in expanding public access to investment opportunities in Pakistan&rsquo;s financial markets, calling it part of a long-term transition to &ldquo;a more transparent, inclusive, and digitally driven economy.&rdquo;

The State Bank of Pakistan launched InvestPak, a digital platform enabling individuals and corporates to invest in government securities online, aiming to modernize financial infrastructure, promote inclusion, and advance Pakistan’s cashless economy

Pakistan’s central bank launches InvestPak to expand digital access to government securities

LAHORE: Pakistan received $12.9 billion in workers&rsquo; remittances during the first four months of the current fiscal year (4MFY26), marking a 9.3% increase from $11.9 billion in the same period last year, according to data released by the State Bank of Pakistan (SBP). In October alone, remittances amounted to $3.4 billion, up 12% year-on-year. On a month-on-month basis, inflows rose 7% from $3.2 billion in September, representing one of the strongest monthly inflows in recent months. The SBP said the rise reflected the government&rsquo;s ongoing push to encourage formal channels and expand digital transfer systems, while reducing reliance on informal money transfer networks. Saudi Arabia remained the single largest source of inflows, contributing $821 million in October, an increase of 9% from September and 7% higher than the same month last year. Remittances from the United Arab Emirates totaled $698 million, up 12% year-on-year. Inflows from the United Kingdom reached $488 million, rising 13% annually and 7% from the previous month. The United States sent $290 million, showing an 8% month-on-month increase, though 4% lower than a year earlier. Meanwhile, receipts from European Union countries surged 27% year-on-year to $457 million. Pakistan recorded $38.3 billion in total remittances during FY25, the highest annual inflow on record. Prime Minister Shehbaz Sharif welcomed the increase, calling overseas Pakistanis &ldquo;a backbone of the economy.&rdquo; &ldquo;Overseas Pakistanis are our invaluable assets, serving the nation by sending their hard-earned money,&rdquo; he said. &ldquo;The consistent rise in remittances reflects the trust expatriates have in our economic direction.&rdquo; Analysts said higher remittances are providing much-needed support to Pakistan&rsquo;s external account, especially as export growth remains subdued. Waqas Ghani, Head of Research at JS Global, said remittances had &ldquo;clocked in at one of the strongest levels in recent months,&rdquo; adding that cumulative inflows of $12.96 billion in 4MFY26 indicated &ldquo;a decent 9 percent year-on-year growth.&rdquo; However, he cautioned that sustaining the trend will depend on &ldquo;consistent policy support, expansion of digital channels, and diversification of overseas labor markets.&rdquo; The Pakistan Remittance Initiative (PRI), launched in 2009 to encourage the use of formal banking channels, continues to play a central role. The number of participating financial institutions has grown from around 25 in 2009 to more than 50 by 2024, improving speed and security for overseas senders. Economists say remittances, now Pakistan&rsquo;s largest source of foreign exchange, will remain critical for economic stability as the country continues to face external financing pressures and persistent inflation.

With Saudi Arabia among largest contributors, Pakistan received $12.9bn in remittances during 4MFY26, rising 9.3%, bolstering external finances as authorities promote formal transfer channels.

Pakistan remittances rise to $12.9 billion in early FY26: central bank

ISLAMABAD: Pakistan&rsquo;s information technology (IT) and IT-enabled services exports reached $1.057 billion in the July-September 2025 quarter, according to data from the State Bank of Pakistan (SBP). This marks the first time the country has surpassed the $1 billion threshold in a single quarter, a 20% increase from $877 million in the same period last year, noted the Head of Equity Research at JS Global, Waqas Ghani. In the first quarter of fiscal year (FY) 2026, IT exports accounted for 48% of total services exports, as per the SBP. The sector has grown steadily from $300 million in the first quarter of FY 2020 to over $1.1 billion in the first quarter of FY 2026. Last fiscal year, the sector reached $3.8 billion in total exports. Third-largest source of foreign exchange IT is Pakistan&rsquo;s third-largest source of foreign exchange, after textiles and rice. It accounts for 45% of total services exports by the end of FY 2025, according to the IT and Telecom Ministry. Waqas Ghani said IT remains a key sector with a consistent trade surplus. &ldquo;Last fiscal year, the sector posted an 87% trade surplus. This was driven by strong demand for software development, IT-enabled services, and freelance exports,&rdquo; he told PakistanTV Digital. Technology analyst Ali Raza called the $1 billion quarterly milestone a sign of growth. &ldquo;The ecosystem has matured, the talent base is stronger, and confidence in our digital infrastructure is increasing,&rdquo; he said. Government&rsquo;s ambitious aims The government has set a target of $5 billion in IT exports for FY 2026 under the &ldquo;Uraan Pakistan&rdquo; initiative. The aim is to reach $10 billion by 2029, positioning technology as a key driver of economic growth. The sector&rsquo;s expansion has been supported by policy changes, including the SBP&rsquo;s decision to raise the retention limit for exporters&rsquo; foreign currency accounts from 35% to 50%. The move provides exporters with greater control over earnings and investment abroad. Stable exchange rates have further encouraged the repatriation of profits, improving the financial environment for exporters.

Pakistan’s IT exports hit $1.057 billion in July-September 2025, marking record growth supported by government targets, policy support, and expanding global market presence.

Articles tagged with "State Bank of Pakistan (SBP)"