KSA commits $3bn in additional deposits for Pakistan

Finance Minister Muhammad Aurangzeb has informed that the Kingdom of Saudi Arabia has committed $3 billion in additional deposits, with disbursement expected in the coming week. He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for three years.

Aurangzeb made the announcement while talking to members of the media in Washington, D.C., on the sidelines of the World Bank–IMF Spring Meetings 2026, and shared important details regarding Saudi financial support for Pakistan and the government’s external financing strategy, read an official statement on Wednesday.

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Aurangzeb said this support comes at a critical time for Pakistan’s external financing needs and would help reinforce foreign exchange reserves and strengthen the country’s external account.

He reiterated the government’s commitment to maintaining reserves in line with its obligations to markets and under the IMF-supported programme, including the objective of achieving around $18 billion in reserves, equivalent to approximately 3.3 months of import cover, by the end of the fiscal year.

The finance minister noted that Pakistan had successfully repaid its $1.4 billion Eurobond last week, describing it as a “non-event,” and reaffirmed that the government remained fully committed to meeting all upcoming external obligations and maturities on time.

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He emphasised that Pakistan’s external financing plan is clearly defined and being implemented in a responsible and disciplined manner.

Referring to his engagements in Washington, Aurangzeb said that he, along with the Governor, State Bank of Pakistan and Pakistan’s Ambassador to the United States, had held a detailed meeting with Saudi Finance Minister H.E. Mohammed bin Abdullah Al-Jadaan.

He recalled that he had also met the Saudi Finance Minister in Islamabad the previous Friday, but noted that the government had deliberately refrained from commenting publicly in the absence of formal communication, despite media reports and speculation, as such matters required clarity and joint understanding before being shared.

Aurangzeb expressed profound gratitude to the leadership of the Kingdom of Saudi Arabia, particularly His Royal Highness Crown Prince Mohammed bin Salman, Saudi Finance Minister H.E. Mohammed bin Abdullah Al-Jadaan, and the Saudi Vice Finance Minister, for their continued support and close cooperation.

He particularly appreciated the efforts made to bring the support package to fruition.

Aurangzeb also acknowledged the role of Pakistan’s political and economic leadership in securing and operationalising the support.

The finance minister stated that, at this juncture, sentiment and confidence were critically important.

“The kind of appreciation that we are receiving is unprecedented,” from international financial institutions, the IMF, the World Bank, institutional investors, and counterparts he was meeting in Washington, said the minister.

He noted that the international community was particularly recognizing Pakistan’s recent diplomatic and facilitative role in helping enable dialogue between parties that had not held face-to-face discussions for decades.

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He said this international appreciation, coupled with Saudi Arabia’s timely financial support, provided Pakistan with important momentum and confidence going forward, both for the economy and for the external account, including its commercial dimensions.

Senator Aurangzeb further noted that Pakistan was advancing its broader external financing agenda, including the recently announced Global Medium-Term Note (GMTN) programme and the planned inaugural Panda Bond issuance, as part of efforts to diversify funding sources and strengthen market access.

The finance minister concluded by reaffirming the government’s commitment to macroeconomic stability, fulfillment of external obligations, reform continuity, and sustained engagement with bilateral and multilateral partners.