Pakistan received a major external financing boost as Saudi Arabia committed $3 billion in fresh support and extended its existing $5 billion deposit, strengthening reserves and easing near-term repayment pressures.
Federal Finance Minister Muhammad Aurangzeb said the additional $3 billion deposits are expected to be disbursed next week, providing critical support to Pakistan’s external account at a time of heightened financing needs.
He further confirmed that the previously placed $5 billion Saudi deposit will now be extended beyond its earlier one-year rollover arrangement, offering longer-term stability to the country’s foreign exchange reserves.
The development follows Pakistan’s recent large external repayments, including payments made to the United Arab Emirates, marking a positive shift in the country’s financial outlook.
Speaking during the World Bank and IMF Spring Meetings 2026 in Washington, Aurangzeb said the Saudi support would play a key role in strengthening reserves and stabilizing the balance of payments.
He reiterated that Pakistan remains committed to its targets under the International Monetary Fund programme, aiming to build foreign exchange reserves to around $18 billion, equivalent to about 3.3 months of import cover.
The finance minister also highlighted Pakistan’s successful repayment of a $1.4 billion Eurobond, emphasizing the government’s commitment to honoring all external obligations in a timely manner.
Aurangzeb revealed that he held detailed discussions with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, alongside officials from the State Bank of Pakistan, to finalize the support package.
He expressed gratitude to Saudi leadership, particularly Crown Prince Mohammed bin Salman, for their continued financial backing during a critical period for Pakistan’s economy.
The minister noted that improving investor confidence remains a priority, adding that Pakistan is witnessing strong engagement from global financial institutions such as the World Bank and the IMF.
As part of its broader financing strategy, Pakistan is also working on diversifying funding sources through instruments such as Global Medium-Term Notes and Panda bonds.
He reaffirmed the government’s resolve to maintain economic stability, continue reforms, and strengthen ties with international partners to ensure sustainable financial recovery.
