Saudi Arabia to provide $3bn support to Pakistan

Saudi Arabia has committed an additional $3 billion in financial support to Pakistan, with disbursement expected next week, Finance Minister Muhammad Aurangzeb said on Wednesday.

Speaking on the sidelines of the IMF-World Bank Spring Meetings in Washington, Aurangzeb said the fresh support comes at a critical time for Pakistan’s external financing needs and will help strengthen foreign exchange reserves and stabilise the external account.

He also confirmed that Saudi Arabia has agreed to extend its existing $5 billion deposit for a longer tenure, removing the need for annual rollovers and providing greater financial certainty.

The development comes as Pakistan faces pressure on its reserves due to the need to repay a roughly $3 billion loan to the United Arab Emirates. The country was unable to secure a rollover of the facility earlier this month, marking the first such instance in seven years.

Pakistan weighs financing options amid UAE loan repayment pressure

Pakistan’s foreign exchange reserves currently stand at around $16 billion, covering approximately three months of imports. The government aims to raise reserves to about $18 billion under its programme with the International Monetary Fund.

Aurangzeb said Pakistan recently repaid a $1.4 billion Eurobond, reaffirming the government’s commitment to meeting all external obligations under a disciplined financing plan.

He also revealed that he held detailed meetings with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan in Washington, as well as earlier discussions in Islamabad, to finalise the support package.

The minister expressed gratitude to Saudi leadership, particularly Mohammed bin Salman, for continued support. He added that Pakistan is witnessing growing confidence from global financial institutions and investors.

Aurangzeb said the country is also advancing broader financing strategies, including new bond issuances, to diversify funding sources and ensure long-term macroeconomic stability.