Saudi Arabia has pledged an additional USD 3 billion to Pakistan, with Riyadh continuing to serve as Islamabad's most reliable financial backstop amid a prolonged economic crisis.
Pakistan's Finance Minister Muhammad Aurangzeb made the announcement on Wednesday on the sidelines of the World Bank-IMF Spring Meetings 2026 in Washington, D.C.
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"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," the Ministry of Finance said in a statement posted on X.
The additional financial support is expected to be disbursed within the coming week. In a significant development, the existing USD 5 billion Saudi deposit, which had previously been subject to annual rollover, will now be extended for a longer period, providing added stability to Pakistan's reserve position. Taken together, the two moves mark a substantial vote of confidence in Islamabad's economic trajectory.
The announcement follows weeks of quiet diplomacy. Saudi Arabia's finance minister had recently made a brief visit to Islamabad to assure the Pakistani leadership that the Gulf country would help cover any potential foreign exchange shortfall resulting from the withdrawal of funds by another Gulf nation. That gap has now been formally plugged.
Pakistan is seeking rollover of nearly $12 billion in external deposits this fiscal year, including around $9 billion from Saudi Arabia and China. The UAE, another key depositor, had agreed only to a short two-month rollover of $2 billion earlier this year, with one tranche of $1 billion still due to mature in July 2026, leaving Islamabad in urgent need of alternative cover.
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Under Pakistan's $7 billion IMF programme, the country is targeting foreign exchange reserves of more than $18 billion by June, equivalent to roughly 3.3 months of import cover. Aurangzeb also pointed to the successful repayment of a USD 1.4 billion Eurobond last week, calling it a "non-event", as evidence that Pakistan is honouring its external obligations on time.
Looking ahead, Islamabad signalled it is working to reduce reliance on bilateral Gulf support by diversifying its funding base, including through a newly announced Global Medium-Term Note programme and a planned inaugural Panda Bond issuance in Chinese capital markets.
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