Pakistan to Get $3bn in Additional Financial Support from Saudi Arabia: Finance Minister

ISLAMABAD: Pakistan is set to receive an additional $3 billion in financial support from Saudi Arabia, with disbursement expected next week, Finance Minister Muhammad Aurangzeb said on Wednesday.

Speaking on the sidelines of the World Bank-IMF Spring Meetings 2026, Aurangzeb noted that the fresh inflow would help strengthen Pakistan’s foreign exchange reserves and ease pressure on its external account.

In a key development, Saudi Arabia has also extended its existing $5 billion deposit for a longer tenure, removing the need for annual rollovers and providing greater financial stability.

The support comes at a critical time as Pakistan prepares to repay a roughly $3 billion loan to the United Arab Emirates by the end of the month. The repayment is expected to put pressure on reserves, currently around $16 billion—covering about three months of imports.

The finance minister reiterated the government’s commitment to meeting targets under the International Monetary Fund programme, aiming to increase reserves to $18 billion, equivalent to approximately 3.3 months of import cover, by the end of the fiscal year.

Aurangzeb also highlighted that Pakistan recently repaid its $1.4 billion Eurobond, describing it as a “non-event” and reaffirming the country’s ability to meet its external obligations on time.

He further shared that he held detailed discussions with Saudi Finance Minister Mohammed Al-Jadaan in Washington, following earlier meetings in Islamabad. He expressed gratitude to Saudi leadership, particularly Crown Prince Mohammed bin Salman, for their continued support.

The minister also acknowledged the role of Pakistan’s leadership, including Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar, in securing the financial package.

Aurangzeb noted growing confidence from global institutions such as the World Bank, as well as investors, in Pakistan’s economic outlook. He added that the country is advancing its broader external financing strategy, including the Global Medium-Term Note (GMTN) programme and plans for its first Panda Bond issuance to diversify funding sources.

Reaffirming the government’s commitment to macroeconomic stability, he said Pakistan will continue pursuing reforms, ensuring timely debt servicing, and maintaining strong engagement with bilateral and multilateral partners.