Saudi Arabia has assured Pakistan of full financial support to help manage mounting economic pressures, as the country faces nearly $5 billion in external debt repayments and rising import costs.
The assurance came during a meeting in Islamabad between Prime Minister Shehbaz Sharif and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. Officials said the visiting minister reaffirmed the kingdom’s confidence in Pakistan’s economy and appreciated its diplomatic role in facilitating dialogue between the United States and Iran.
According to sources, Pakistan has requested at least $5 billion in fresh loans along with an oil financing facility worth $1.2 billion annually. The existing Saudi oil facility is set to expire this month, and Islamabad has sought a five-year extension.
Pakistan is currently benefiting from a $5 billion Saudi cash deposit facility and is reportedly aiming to double the amount to stabilize its foreign exchange reserves. The country is due to repay around $4.8 billion this month, including $3.5 billion owed to the United Arab Emirates.
Officials warned that without fresh inflows, Pakistan’s foreign reserves could drop to approximately $11.5 billion, increasing pressure on the external account. The development comes at a crucial time as the country works to maintain macroeconomic stability and fulfill its commitments under the International Monetary Fund (IMF) program.
The Prime Minister’s Office said both sides also discussed expanding cooperation in trade, investment, and economic development, with Saudi Arabia reaffirming its commitment to strengthening long-standing bilateral ties with Pakistan.
