Saudi Arabia announces $3 billion additional financial support and extends $5 billion deposit for Pakistan, boosting forex reserves and economic stability.
Federal Minister for Finance and Revenue Muhammad Aurangzeb has announced that the Kingdom of Saudi Arabia will provide an additional USD 3 billion in deposits to Pakistan, with disbursement expected within the coming week.
In a significant development, the minister also confirmed that the existing USD 5 billion Saudi deposit will be extended beyond its previous annual rollover arrangement, offering longer-term financial stability.
Announcement at IMF-World Bank Spring Meetings
The announcement was made in Washington, D.C., during the World Bank–IMF Spring Meetings 2026, where Senator Aurangzeb engaged with global financial leaders to discuss Pakistan’s economic outlook and external financing strategy.
He emphasized that this financial assistance comes at a critical time for Pakistan’s external financing needs, helping to:
- Strengthen foreign exchange reserves
- Stabilize the external account
Boost investor confidence
Pakistan Targets $18 Billion in Reserves
The Finance Minister reiterated Pakistan’s commitment under the International Monetary Fund (IMF) programme, aiming to raise foreign exchange reserves to approximately:
- USD 18 billion
- Equivalent to 3.3 months of import cover by the end of the fiscal year
Highlighting Pakistan’s financial discipline, Aurangzeb noted that the country had successfully repaid a USD 1.4 billion Eurobond, calling it a “non-event,” signaling improved economic resilience.
He reaffirmed that Pakistan remains fully committed to meeting all external debt obligations on time.
High-Level Engagement with Saudi Leadership
During his visit, the Finance Minister held key meetings with Saudi officials, including:
- Mohammed bin Abdullah Al-Jadaan
- Senior Saudi financial leadership
He also acknowledged earlier discussions held in Islamabad, noting that the government avoided premature statements until formal confirmation was received.Aurangzeb expressed deep gratitude to, Mohammed bin Salman, Saudi Finance Ministry leadership for their continued support and cooperation.
The minister stated that Pakistan is currently receiving unprecedented appreciation from international financial institutions, including,World Bank,IMF and Global investors.
He highlighted that Pakistan’s recent diplomatic efforts in facilitating dialogue between global stakeholders have also contributed to improved international perception.
Aurangzeb noted that Pakistan is actively expanding its financing strategy through:
- Global Medium-Term Note (GMTN) Programme
- Planned Panda Bond issuance
These initiatives aim to diversify funding sources and strengthen market access.
