DUBAI/LAHORE: Saudi Arabia will provide USD3 billion in additional support for Pakistan to help the South Asian nation bridge a multi-billion dollar gap in its finances linked to an upcoming debt repayment to the United Arab Emirates.
The extra funding for Pakistan comes on top of Riyadh extending the rollover arrangement for an additional USD5 billion deposit for a longer period, Finance Minister Muhammad Aurangzeb told reporters in Washington.
The move underlines a deepening relationship between Riyadh and Islamabad, cemented last year by a mutual defence pact treating aggression against either as an attack on both.
“We can confirm that Saudi Arabia has agreed to a USD3 billion deposit with Pakistan to support their balance of payments,” a Saudi Ministry of Finance spokesperson told Reuters.
Pakistan faces a USD3.5 billion repayment to the UAE this month that has put a strain on its foreign exchange reserves, which stood at about USD16.4 billion as of March 27.
The repayment to the UAE amounts to roughly 18 percent of those holdings.
Under Pakistan’s USD7 billion IMF programme, the country is targeting foreign exchange reserves of more than USD18 billion by June.
Saudi Finance Minister Mohammed Al-Jadaan was in Pakistan on Friday in what one source familiar with the matter described as a show of economic support, without providing further details.
“Senator 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,” the finance ministry said in a statement.
The ministry added that Pakistan is committed to maintaining foreign exchange reserves “in line with its obligations to markets and under the IMF-supported programme”.
Pakistan’s international bonds rallied on the news, with longer-dated maturities adding nearly 1 cent to trade at their strongest level since late February.
Asked on Monday whether a Saudi loan was on the table to replace the UAE facility, Pakistani Finance Minister Muhammad Aurangzeb said “all options are on the table,” including Eurobonds, loans and commercial debt.
Saudi Arabia has repeatedly stepped in to support Pakistan during periods of economic stress. In 2018, Riyadh unveiled a USD6 billion package that included a USD3 billion deposit at central bank and USD3 billion in oil supplies on deferred payment. Reuters
APP adds: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with disbursement expected in the coming week.
According to a press release issued by the finance ministry here on Wednesday, the minister was talking to the media in Washington, D.C., on the sidelines of the World Bank–IMF Spring Meetings 2026.
He said the existing USD 5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period. He shared important details regarding Saudi financial support for Pakistan and the government’s external financing strategy.
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