Web Desk – Islamabad, Pakistan : Saudi Arabia has announced an additional $3 billion financial support package for Pakistan and confirmed the extension of its existing $5 billion deposit, marking a significant boost to Islamabad’s external financing position.
According to Pakistan’s Ministry of Finance, the new deposits are expected to be disbursed next week, strengthening the country’s foreign exchange reserves at a critical time.
Finance Minister Muhammad Aurangzeb made the announcement during a media briefing in Washington on the sidelines of the 2026 Spring Meetings of the World Bank and the International Monetary Fund (IMF).
He said the Saudi financial assistance would help stabilize Pakistan’s external accounts and reinforce foreign exchange reserves, which are crucial for macroeconomic stability and debt servicing obligations.
The finance ministry stated that the $5 billion Saudi deposit, previously rolled over annually, will now be extended on a long-term basis, improving predictability in external financing.
Aurangzeb said Pakistan remains committed to building reserves toward a target of around $18 billion under its IMF-backed reform programme, equivalent to roughly 3.3 months of import cover.
He also highlighted recent successful repayment of a $1.4 billion Eurobond, describing it as a “non-event” and evidence of improved market confidence in Pakistan’s economy.
The minister added that Pakistan is working to diversify its funding sources through instruments such as Global Medium-Term Notes and Panda Bonds.
Officials said the latest Saudi support reflects continued strategic economic cooperation between Islamabad and Riyadh, particularly at a time of global financial uncertainty and regional geopolitical tensions.
