WASHINGTON: Pakistan has secured $3 billion in additional financial support from Saudi Arabia, while also receiving an extension of an existing $5 billion deposit, according to Finance Minister Muhammad Aurangzeb.
The announcement came during the World Bank-IMF Spring Meetings 2026 in Washington, where the finance minister held discussions with Saudi officials on strengthening bilateral economic cooperation.
Fresh Financial Support and Deposit Extension
According to the finance minister, the new $3 billion assistance from Saudi Arabia is expected to be disbursed next week. The support is aimed at helping Pakistan manage its external financing needs and stabilise foreign exchange reserves.
Saudi Arabia has also agreed to extend its existing $5 billion deposit for a longer duration, moving away from short-term rollover arrangements. This step is expected to ease immediate repayment pressure and provide more predictable financial stability for Pakistan.
Pressure from External Debt Obligations
The development comes as Pakistan faces significant external repayment obligations, including discussions around a $3 billion loan repayment to the United Arab Emirates. Reports suggest that Islamabad has struggled to secure a rollover agreement in that case, adding pressure on reserves.
Pakistan’s foreign exchange reserves currently stand at around $16 billion, which is considered sufficient for roughly three months of imports. The government has set a target of increasing reserves to about $18 billion under its IMF-supported programme.
International Monetary Fund continues to play a key role in Pakistan’s macroeconomic framework, with ongoing reforms linked to fiscal discipline and external financing targets.
Eurobond Repayment and Investor Confidence
Finance Minister Aurangzeb also confirmed that Pakistan recently repaid a $1.4 billion Eurobond, describing the transaction as a “non-event” and a sign of improved financial management.
Officials say this repayment, along with ongoing support from friendly countries, has helped improve investor confidence and stabilise market sentiment.
PM Shehbaz Sharif to Embark on Three-Nation Diplomatic Visit Amid Regional Tensions
High-Level Diplomatic Engagements
The finance minister, along with senior officials including the State Bank governor and Pakistan’s ambassador to the United States, held meetings with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan to finalise the package.
Mohammed bin Salman and Saudi economic leadership were also acknowledged for their continued financial cooperation and strategic support.
Broader Economic Strategy
Pakistan is also pursuing broader financing strategies, including its Global Medium-Term Note (GMTN) programme and plans for its first Panda Bond issuance. These initiatives aim to diversify funding sources and improve access to international capital markets.
Officials say these steps are part of a wider effort to ensure macroeconomic stability, meet debt obligations on time, and strengthen long-term economic resilience.
With fresh Saudi support and ongoing engagement with international financial institutions, the government says it is aiming to reinforce foreign exchange reserves and reduce short-term financing risks.
However, economists note that sustained stability will depend on continued reforms, export growth, and successful navigation of global economic uncertainties.
