Pakistan has received a major financial boost as Saudi Arabia has committed an additional $3 billion in deposits, which are expected to be disbursed to Pakistan next week, according to Federal Minister for Finance Muhammad Aurangzeb.
The announcement was made during a press interaction in Washington, D.C., on the sidelines of the 2026 Spring Meetings of the World Bank and the International Monetary Fund.
Roll-Over of Existing Saudi Deposits
The finance minister also confirmed that Saudi Arabia will roll over its existing $5 billion deposits for a longer term, replacing the previous annual renewal arrangement.
Officials say this move will provide Pakistan with additional financial stability and help strengthen foreign exchange reserves at a critical time.
Economic Stability and External Financing
Muhammad Aurangzeb said the Saudi financial package comes at a time when Pakistan requires stable external inflows to meet repayment obligations and support its external account position.
He added that the inflows will contribute to improving the country’s reserve position and maintaining macroeconomic stability under ongoing reform commitments.
IMF Targets and Debt Management
The finance minister reiterated the government’s commitment to meeting targets under the IMF program, stating that Pakistan aims to raise foreign exchange reserves to around $18 billion by the end of the current fiscal year.
He also highlighted the successful repayment of a $1.4 billion Eurobond, describing it as a sign of improving external debt management and fiscal discipline.
Broader Economic Outlook
Aurangzeb thanked Saudi leadership, including Crown Prince Mohammed bin Salman, for continued support, noting that Pakistan’s economic reforms and diplomatic engagement are being positively viewed by international financial institutions and investors.
He further stated that Pakistan is working on diversifying funding sources through instruments such as Panda Bonds and Global Medium-Term Note programs to ensure long-term economic resilience.
Saudi Arabia’s renewed financial commitment is seen as a significant stabilizing factor for Pakistan’s economy. With continued external support and ongoing reforms, Islamabad aims to maintain financial stability and strengthen investor confidence in the months ahead.
