Saudi Arabia announces $3bn additional support to Pakistan, extends $5bn deposit

BusinessTop NewsSaudi Arabia announces $3bn additional support to Pakistan, extends $5bn depositBy Web Desk-Apr 15, 2026ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has announced that the Saudi Arabia has committed an additional $3 billion in deposits for Pakistan, with disbursement expected in the coming week, according to a statement issued by the Finance Ministry on Wednesday. He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period. The finance minister made the announcement while speaking to members of the media in Washington, D.C., on the sidelines of the World Bank–IMF Spring Meetings 2026. He also shared key details regarding Saudi financial support and the government’s broader external financing strategy. Senator Aurangzeb said this support comes at a critical time for Pakistan’s external financing needs and would help reinforce foreign exchange reserves and strengthen the country’s external account. He reiterated the government’s commitment to maintaining reserves in line with its obligations to markets and under the IMF-supported programme, including the objective of achieving around $18 billion in reserves, equivalent to approximately 3.3 months of import cover, by the end of the fiscal year. The minister noted that Pakistan had successfully repaid its $1.4 billion Eurobond last week, describing it as a “non-event,” and reaffirmed the government’s commitment to meeting all upcoming external obligations and maturities on time. He emphasized that Pakistan’s external financing plan is clearly defined and is being implemented in a responsible and disciplined manner. Referring to his engagements in Washington, Senator Aurangzeb said that 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 Moham...