In a major financial boost for Pakistan, Saudi Arabia has pledged an additional $3 billion in support while extending its existing $5 billion deposit, providing much-needed relief to the country’s external financing position.
The announcement was made by Finance Minister Muhammad Aurangzeb during his visit to Washington on the sidelines of the IMF-World Bank Spring Meetings. Officials confirmed that the fresh $3 billion deposit is expected to be disbursed soon, while the previously placed $5 billion will now be extended for a longer duration instead of being rolled over annually.
According to the finance ministry, the financial support will help strengthen Pakistan’s foreign exchange reserves and improve its external account at a critical time. The country is aiming to build reserves to around $18 billion under its ongoing programme with the International Monetary Fund.
Officials noted that the support comes amid ongoing economic challenges, including external debt obligations and pressure on reserves. The additional funding is expected to provide stability and boost investor confidence, particularly as Pakistan continues to implement economic reforms.
Aurangzeb also reiterated that the government remains committed to meeting all external obligations on time and maintaining financial discipline. He highlighted that Pakistan has recently fulfilled key repayment commitments, signalling improved economic management.
The development reflects the strong economic ties between Pakistan and Saudi Arabia, with Riyadh continuing to play a key role in supporting Islamabad during periods of financial stress. Analysts believe such assistance will help ease short-term pressures while giving the government space to continue structural reforms.
The move is being seen as a timely intervention that could stabilise Pakistan’s financial outlook, as the country navigates a challenging economic environment and works towards long-term recovery.