National ( The cow news digital ) The Kingdom of Saudi Arabia has announced additional financial assistance of $3 billion for Pakistan, along with the extension of an existing $5 billion deposit facility, according to Pakistan’s Ministry of Finance.
Federal Minister for Finance Muhammad Aurangzeb confirmed that Saudi Arabia has approved fresh deposits worth $3 billion, which are expected to be disbursed within the coming week. He made the announcement during media interaction in Washington, D.C., on the sidelines of the World Bank and International Monetary Fund (IMF) Spring Meetings 2026.
The finance minister said that the Saudi support comes at a crucial time for Pakistan’s external financing needs. He added that the assistance will help strengthen the country’s foreign exchange reserves and stabilize its external accounts, which have been under pressure due to repayment obligations and import requirements.
According to the Ministry of Finance, the existing $5 billion Saudi deposit arrangement will now be extended on a long-term basis instead of being rolled over annually. Officials described this development as a significant step toward improving macroeconomic stability and investor confidence.
Aurangzeb also noted that Pakistan remains committed to achieving its IMF program targets, including increasing foreign exchange reserves to approximately $18 billion, equivalent to around 3.3 months of import cover. He highlighted that recent financial operations, including the successful repayment of a $1.4 billion Eurobond, reflect the government’s commitment to meeting external obligations on time.
During his visit to Washington, the finance minister held detailed discussions with Saudi Finance Minister Mohammed Al-Jadaan, alongside the Governor of the State Bank of Pakistan and Pakistan’s Ambassador to the United States. He expressed gratitude to Saudi leadership, particularly Crown Prince Mohammed bin Salman, for their continued financial and diplomatic support.
He further stated that Pakistan is working on diversifying its funding sources through international capital market instruments, including the Global Medium Term Note program and Panda bonds. These initiatives aim to broaden financing channels and reduce dependency on short-term external borrowing.
read more
- Imran Khan and the Politics of Idolization
- Pakistan, Taliban, and Afghanistan: The Complex Triangle of Influence
The finance minister emphasized that maintaining investor confidence and international financial credibility remains a top priority for the government. He added that Pakistan continues to receive positive engagement from global financial institutions, including the IMF and World Bank.
Officials believe that the latest Saudi financial commitment will play a key role in stabilizing Pakistan’s economy and supporting its ongoing reform agenda.
