- New support of $3 billion will be disbursed next week.
- Pakistan repays $1.4 billion in Eurobonds, something it considers irrelevant.
- IMF investors show confidence in Pakistan’s economic prospects.
WASHINGTON: Saudi Arabia has committed $3 billion in additional financial support to Pakistan, expected to be disbursed next week, while extending its existing $5 billion deposit for a longer period, Finance Minister Muhammad Aurangzeb said on Wednesday.
Speaking to reporters in Washington on the sidelines of the World Bank and IMF 2026 spring meetings, Aurangzeb said the new 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.
The development comes amid reports that Pakistan was in talks with Saudi Arabia and China for financial support as it prepares to repay a loan of about $3 billion to the United Arab Emirates.
the conversations, The news reported, citing BloombergThey involve loans and investments, the people said, asking not to be identified because the conversations are private. The amount of support being discussed is more than $3.5 billion, one of the people said.
Pakistan failed to reach a deal with the United Arab Emirates to refinance debt for the first time in seven years. Islamabad will now repay the amount later this month, putting significant pressure on its foreign exchange reserves, which stand at about $16 billion, enough to cover just three months of imports.
Finance Minister Aurangzeb, while speaking to the media today, noted that the government remains committed to maintaining reserves in line with its obligations under the IMF-backed programme, targeting around $18 billion (equivalent to approximately 3.3 months of import cover) by the end of the current fiscal year.
He further revealed that the current $5 billion Saudi deposit will no longer be subject to annual renewal agreements and will instead be extended for a longer term, providing greater financial stability.
Highlighting recent developments, the Finance Minister said Pakistan had successfully repaid its $1.4 billion Eurobond last week, describing the transaction as a “non-event”, and reaffirmed the government’s determination to meet all upcoming external obligations on time under a clearly defined and disciplined financing plan.
He also shared that he, along with the governor of the State Bank of Pakistan and Pakistan’s ambassador to the United States, held a detailed meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan in Washington. He added that he had also previously met the Saudi minister in Islamabad, but refrained from making public comments at the time due to the absence of formal communication.
The minister expressed gratitude to Saudi leaders, particularly Crown Prince Mohammed bin Salman, Finance Minister Al-Jadaan and Saudi Deputy Finance Minister, for their continued support and cooperation in finalizing the package.
Aurangzeb also acknowledged the role of Pakistan’s leaders, including Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and key economic officials, in securing and operationalizing the support.
He said Pakistan is witnessing growing confidence from international financial institutions, including the IMF and World Bank, as well as institutional investors, noting that the country’s recent diplomatic role in facilitating dialogue between rival states has been widely appreciated.
The minister added that this international goodwill, combined with timely assistance from Saudi Arabia, has strengthened economic momentum and investor confidence.
He further noted that Pakistan is advancing its broader external financing strategy, including the Global Medium-Term Note (GMTN) program and plans for its inaugural Panda bond issuance, aimed at diversifying funding sources and improving market access.
Concluding his remarks, Aurangzeb reaffirmed the government’s commitment to macroeconomic stability, continuity of reforms, timely debt servicing and sustained engagement with bilateral and multilateral partners, adding that a detailed media briefing would be held at the end of his visit.
