Saudi Arabia announces $3bn additional support to Pakistan, extends $5bn deposit

ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has announced that the Saudi Arabia has committed an additional $3 billion in deposits for Pakistan, with disbursement expected in the coming week, according to a statement issued by the Finance Ministry on Wednesday.

He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period.

The finance minister made the announcement while speaking to members of the media in Washington, D.C., on the sidelines of the World Bank–IMF Spring Meetings 2026. He also shared key details regarding Saudi financial support and the government’s broader external financing strategy.

Senator Aurangzeb said this support comes at a critical time for Pakistan’s external financing needs and would help reinforce foreign exchange reserves and strengthen the country’s external account.

He reiterated the government’s commitment to maintaining reserves in line with its obligations to markets and under the IMF-supported programme, including the objective of achieving around $18 billion in reserves, equivalent to approximately 3.3 months of import cover, by the end of the fiscal year.

The minister noted that Pakistan had successfully repaid its $1.4 billion Eurobond last week, describing it as a “non-event,” and reaffirmed the government’s commitment to meeting all upcoming external obligations and maturities on time.

He emphasized that Pakistan’s external financing plan is clearly defined and is being implemented in a responsible and disciplined manner.

Referring to his engagements in Washington, Senator Aurangzeb said 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.

He added that he had also met the Saudi finance minister in Islamabad the previous Friday, but the government had deliberately refrained from commenting publicly in the absence of formal communication, despite media speculation, as such matters require clarity and mutual understanding before disclosure.

The finance minister expressed profound gratitude to the leadership of Saudi Arabia, particularly Crown Prince Mohammed bin Salman, Finance Minister Mohammed bin Abdullah Al-Jadaan, and the Saudi Vice Finance Minister, for their continued support and cooperation. He also appreciated their efforts in finalizing the support package.

Senator Aurangzeb acknowledged the role of Pakistan’s political and economic leadership in securing and operationalizing the support. He thanked the prime minister, the field marshal, the deputy prime minister, the governor of the State Bank, Finance Secretary Imdad Ullah Bosal, and their respective teams for their coordination.

He noted that sentiment and confidence are critically important at this juncture, adding that Pakistan is receiving strong appreciation from international financial institutions, including the IMF and the World Bank, as well as from institutional investors and global counterparts.

He further stated that the international community is recognizing Pakistan’s recent diplomatic and facilitative role in enabling dialogue between parties that had not engaged in face-to-face discussions for decades.

According to the minister, this international recognition, combined with Saudi Arabia’s timely financial support, provides important momentum and confidence for Pakistan’s economy and external sector.

Senator Aurangzeb also highlighted progress on the country’s broader external financing agenda, including the recently announced Global Medium-Term Note (GMTN) programme and the planned inaugural Panda Bond issuance, aimed at diversifying funding sources and strengthening market access.

He concluded by reaffirming the government’s commitment to macroeconomic stability, timely fulfillment of external obligations, continuity of reforms, and sustained engagement with bilateral and multilateral partners. A more detailed media interaction, he added, will take place at the conclusion of the visit.