Saudi Arabia steps in again with $3bn support for Pakistan

April 15, 2026 (MLN):  The Kingdom of Saudi Arabia has committed an additional $3 billion in deposits to Pakistan, with disbursement expected within the coming week, providing a significant boost to the country’s external financing position.

In addition, the existing $5 billion Saudi deposit will no longer be subject to annual rollover conditions and will instead be extended for a longer term.

The support comes at a critical time as Pakistan aims to strengthen its foreign exchange reserves and meet its target of around $18 billion equivalent to approximately 3.3 months of import cover by the end of the fiscal year under its programme with the International Monetary Fund, according to a press release issued.

Speaking in Washington, D.C., on the sidelines of the World Bank–IMF Spring Meetings 2026, Federal Minister for Finance and Revenue Muhammad Aurangzeb said he, along with the Governor of the State Bank of Pakistan and Pakistan’s Ambassador to the United States, held a detailed meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan.

He noted that a prior meeting had also taken place in Islamabad the previous Friday, but the government had refrained from public comment until formal communication was finalized.

The minister said the Saudi support would reinforce Pakistan’s external account and enhance foreign exchange reserves at a time of pressing financing needs. He reiterated the government’s commitment to maintaining adequate reserves in line with market expectations and IMF programme requirements.

Finance minister Aurangzeb highlighted that Pakistan had successfully repaid its $1.4 billion Eurobond the previous week, describing it as a “non-event,” and emphasized that the government remains fully committed to meeting all upcoming external obligations and maturities on time through a clearly defined and disciplined financing strategy.

He expressed deep gratitude to Saudi leadership, particularly Crown Prince Mohammed bin Salman, Finance Minister Al-Jadaan, and the Saudi Vice Finance Minister for their continued support and cooperation in finalizing the package.

The finance minister also acknowledged the role of Pakistan’s leadership and institutions, including the Prime Minister, Deputy Prime Minister, the State Bank of Pakistan, and Finance Secretary Imdad Ullah Bosal, in securing and operationalizing the support.

Finance minister Aurangzeb noted that investor sentiment and confidence remain critical at this stage, adding that Pakistan is receiving strong appreciation from international financial institutions, including the IMF and the World Bank, as well as from institutional investors.

He said the international community has also recognized Pakistan’s recent diplomatic efforts in facilitating dialogue between parties that had not engaged directly for decades.

He further stated that Pakistan is advancing its broader external financing strategy, including the Global Medium-Term Note (GMTN) programme and a planned inaugural Panda Bond issuance, aimed at diversifying funding sources and strengthening access to international capital markets.

Concluding his remarks, finance minister Aurangzeb reaffirmed the government’s commitment to macroeconomic stability, timely fulfillment of external obligations, continuation of reforms, and sustained engagement with bilateral and multilateral partners, adding that a more detailed media interaction would take place at the end of the visit.

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