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In a major boost to Pakistan’s struggling economy, Saudi Arabia has agreed to roll over $5 billion in deposits and extend a $1 billion oil financing facility for the ongoing fiscal year 2025–26. The financial assistance is aimed at stabilizing Pakistan’s foreign exchange reserves and ensuring a steady supply of energy imports.
Saudi Arabia has been one of Pakistan’s key financial allies, providing vital economic assistance during times of balance-of-payment crises. The oil facility, introduced under the Saudi Fund for Development (SFD), allows Pakistan to import oil on deferred payment terms reducing pressure on foreign reserves.
Key Details of the Agreement
| Support Type | Amount | Purpose | Maturity/Duration |
| Oil Financing Facility | $1 Billion (≈ Rs. 290 Billion) | Energy imports, easing fiscal pressure | FY2025–26 |
| Deposit Rollovers | $5 Billion (≈ Rs. 1.45 Trillion) | Strengthening forex reserves | Dec 2025 & Jun 2026 |
| Monthly Oil Supply | $100 Million | Deferred payment oil imports | Ongoing |
Officials confirmed that Pakistan has already received $300 million worth of oil supplies in the first quarter of FY2025–26 under this facility.
A senior finance ministry official said:
“Saudi Arabia’s continued financial support reflects strong bilateral relations and confidence in Pakistan’s economic reforms.”
The $5 billion deposits, placed with the State Bank of Pakistan (SBP) at a 4% annual interest rate, serve as crucial budgetary support, helping Pakistan maintain its external account stability and fulfill IMF program commitments.
Economic Significance
The move not only strengthens Pakistan’s liquidity position but also reinforces its credibility with international lenders and investors. Analysts believe this extension could stabilize the rupee, reduce fuel import stress, and support upcoming fiscal adjustments.
