- Fresh aid of $3bn to be disbursed next week.
- Pakistan repays $1.4 billion Eurobond, calls it a non-event.
- IMF shows investors confidence in Pakistan’s economic outlook.
WASHINGTON: Saudi Arabia has committed $3 billion in additional financial support to Pakistan, with disbursement expected next week, while extending its existing $5 billion deposit for a longer period, Finance Minister Muhammad Aurangzeb said on Wednesday.
Speaking to reporters in Washington on the sidelines of the 2026 World Bank-IMF Spring Meetings, Aurangzeb said the fresh Saudi support comes at a critical time for Pakistan’s external financing needs and will help strengthen foreign reserves and strengthen the external account.
The development comes amid reports that Pakistan was in talks with Saudi Arabia and China to secure financial support as it prepares to repay a loan of around $3 billion to the United Arab Emirates.
the conversations, The news reported, with reference Bloomberginvolving loans and investments, the people said, asking not to be identified because the conversations are private. The amount of aid being discussed is more than $3.5 billion, one of the people said.
Pakistan failed to reach an agreement with the UAE to transfer the debt for the first time in seven years. Islamabad will now repay the amount by the end of this month, putting significant pressure on its foreign exchange reserves, which stand at around $16 billion, enough to cover just three months of imports.
FinMin Aurangzeb, while speaking to the media today, noted that the government remains committed to maintaining reserves in line with its commitments under the IMF-backed programme, targeting around $18 billion – equivalent to approximately 3.3 months of import coverage – by the end of the current fiscal year.
He further revealed that the existing Saudi Arabian deposit of $5 billion will no longer be subject to annual rollover arrangements and will instead be extended for a longer period, providing greater financial stability.
Highlighting the latest development, the finance minister said Pakistan had successfully repaid its $1.4 billion Eurobond last week, describing the transaction as a “non-event”, and reaffirmed the government’s resolve to meet all future external commitments on time under a clearly defined and disciplined financing plan.
He also shared that he along with the Governor of the State Bank of Pakistan and the Ambassador of Pakistan to the US held a detailed meeting with the Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan in Washington. He added that he had also met the Saudi minister earlier in Islamabad but refrained from public comment at the time due to the absence of formal communication.
The minister expressed gratitude to Saudi leadership, especially Crown Prince Mohammed bin Salman, Finance Minister Al-Jadaan and the Saudi Deputy Finance Minister, for their continued support and cooperation in finalizing the package.
Aurangzeb also acknowledged the role played by Pakistan’s leadership, including Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and key economic officials in securing and operationalizing the aid.
He said Pakistan is witnessing growing confidence from international financial institutions, including the IMF and the World Bank, as well as institutional investors, noting that the country’s recent diplomatic role in facilitating dialogue between rival states has been widely appreciated.
The minister added that this international goodwill, coupled with Saudi Arabia’s timely assistance, has strengthened economic momentum and investor confidence.
He further noted that Pakistan is advancing its broader external financing strategy, including the Global Medium-Term Note (GMTN) program and plans for its initial Panda Bond issuance, with the aim of diversifying funding sources and improving market access.
Concluding his remarks, Aurangzeb reaffirmed the government’s commitment to macroeconomic stability, continuity of reforms, timely debt servicing and sustained engagement with bilateral and multilateral partners, adding that a detailed media briefing would follow at the end of his visit.
