WASHINGTON: Saudi Arabia has pledged $3 billion in additional financial support for Pakistan, with funds expected next week, while also agreeing to extend its existing $5 billion deposit beyond the previous rollover terms, Finance Minister Muhammad Aurangzeb said on Wednesday.
Speaking to journalists in Washington on the sidelines of the World Bank–IMF Spring Meetings 2026, Aurangzeb said the fresh Saudi support comes at a critical time for Pakistan’s external financing needs and will help bolster foreign exchange 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 roughly $3 billion loan to the United Arab Emirates.
The talks, The News reported, citing Bloomberg, involve loans and investment, the people said, asking not to be identified because the talks are private. The amount of support under discussion is more than $3.5 billion, one of the people said.
Pakistan failed to reach an agreement with the UAE to roll over the debt for the first time in seven years. Islamabad will now repay the amount by the end of this month, putting significant strain on its foreign exchange reserves, which stand at about $16 billion, enough to cover just three months of imports.
FinMin Aurangzeb, while talking to media today, noted that the government remains committed to maintaining reserves in line with its obligations under the IMF-supported programme, targeting around $18 billion — equivalent to approximately 3.3 months of import cover — by the end of the current fiscal year.
He further revealed that the existing $5 billion Saudi deposit will no longer be subject to annual rollover arrangements and will instead be extended for a longer tenure, providing greater financial stability.
Highlighting recent developments, 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 upcoming external obligations on time under a clearly defined and disciplined financing plan.
He also shared that he, along with the State Bank of Pakistan governor and Pakistan’s ambassador to the United States, held a detailed meeting with 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, particularly Crown Prince Mohammed bin Salman, Finance Minister Al-Jadaan and the Saudi vice finance minister, for their continued support and cooperation in finalising the package.
Aurangzeb also acknowledged the role of 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 operationalising the support.
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, combined 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) programme and plans for its inaugural Panda Bond issuance, aimed at diversifying funding sources and enhancing 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.
