Saudi Arabia agrees to provide Pakistan with additional financial assistance worth USD 3 billion

Saudi Arabia’s FM Al-Jadaan (C) with Pakistan’s Muhammad Aurangzeb (L) and Governor of the State Bank of Pakistan, Ahmad (R), prior to their meeting in Washington. PIC/AFP

Saudi Arabia has agreed to provide Pakistan with additional financial assistance worth USD 3 billion, while also extending its earlier USD 5 billion deposit facility for three more years.

According to Finance Minister Muhammad Aurangzeb, the existing deposit arrangement will no longer follow yearly renewal and will instead be extended for a longer duration. He said, "Saudi Arabia has pledged an additional USD 3 billion in deposits for Pakistan and has extended its existing USD 5 billion facility for a further three years," reported PTI.

The financial assistance comes at a crucial time for Pakistan, which is preparing to repay USD 3.5 billion to the United Arab Emirates this month. The country is also facing pressure on its foreign exchange reserves. Officials said the fresh support will help stabilise Pakistan's external account and strengthen its reserve position at a sensitive time.

How will this financial support help?

Finance Minister Aurangzeb said the new support will play an important role in improving financial stability. He noted, "The fresh Saudi support comes at a critical time for Pakistan's external financing needs and will help bolster foreign exchange reserves and strengthen the external account," as per the news agency.

The extended Saudi financial support is also expected to provide short-term relief to Pakistan's external financing pressures. However, officials continue to focus on meeting repayment obligations and maintaining stability under the IMF programme.

The announcement was made during his visit to Washington on the sidelines of the World Bank-IMF Spring Meetings 2026.

The announcement also comes ahead of Prime Minister Shehbaz Sharif's scheduled visits to Saudi Arabia, Qatar and Turkiye from April 15 to 18. These visits are expected to further discuss economic and diplomatic cooperation.

IMF-linked conditions and external obligations

Pakistan is currently under an IMF-supported programme, which includes conditions related to maintaining financial discipline. The IMF has asked key bilateral partners such as Saudi Arabia, China, and the UAE to keep their deposits in Pakistan until the programme is completed, reported the news agency.

Aurangzeb said the government remains committed to meeting its obligations and maintaining reserves in line with IMF targets and market requirements.

(With PTI Inputs)