Saudi Arabia pledges financial backing for Pakistan

Saudi Arabia has assured Pakistan of full financial support as Islamabad faces mounting external pressures, including nearly $5 billion in debt repayments and rising import costs linked to ongoing regional tensions.

The assurance came during a meeting between Prime Minister Shehbaz Sharif and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan in Islamabad. Officials said the visiting minister reaffirmed Riyadh’s commitment to supporting Pakistan’s economic stability and expressed confidence in its diplomatic role in facilitating dialogue between the United States and Iran.

While no formal agreements were finalised during the meeting, Pakistani authorities had earlier requested at least $5 billion in additional financial assistance, along with an extension of the existing oil financing facility worth $1.2 billion annually. The current oil facility is set to expire this month, and Islamabad is seeking a five-year extension to maintain external account stability.

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Pakistan is also relying on a $5 billion Saudi deposit already held with the central bank and is exploring options to increase this amount to strengthen foreign exchange reserves. With approximately $4.8 billion in repayments due, including significant liabilities to the United Arab Emirates, reserves could face pressure without fresh inflows.

Finance Minister Muhammad Aurangzeb has been actively engaging with Saudi counterparts to secure support ahead of international financial meetings. The discussions highlight Pakistan’s urgent need for external financing to manage economic challenges and maintain reserve levels.

Prime Minister Sharif expressed appreciation for Saudi Arabia’s longstanding support, particularly under the leadership of Mohammed bin Salman, and reaffirmed Pakistan’s commitment to expanding bilateral cooperation in trade, investment, and development. The meeting underscored the enduring strategic partnership between the two countries during a period of economic uncertainty.