By Staff Reporter
ISLAMABAD: Saudi Arabia has committed an additional $3 billion in deposits to Pakistan and extended the term of its existing $5 billion facility by three years, Finance Minister Muhammad Aurangzeb said Wednesday, providing timely relief as Islamabad prepares to repay a $3.5 billion loan to the United Arab Emirates.
Aurangzeb announced the package on the sidelines of the World Bank-IMF Spring Meetings 2026, describing the Saudi support as arriving at a “critical time” for Pakistan’s external financing needs. The fresh deposits, with disbursement expected next week, will help reinforce foreign-exchange reserves and strengthen the country’s external account, he said.
The existing $5 billion Saudi deposit will no longer be subject to annual rollovers and will instead remain in place for the extended three-year period, offering greater predictability for Pakistan’s balance of payments.
The announcement comes as Pakistan faces its first failure in seven years to secure a rollover of the UAE loan, due for repayment by the end of April. With foreign-exchange reserves standing at about $16 billion — enough to cover roughly three months of imports — the outflow risks testing the government’s ability to stay on track with targets under its $7 billion International Monetary Fund program.
Aurangzeb, speaking to reporters in Washington, reiterated the government’s commitment to building reserves to around $18 billion by the end of the fiscal year, equivalent to about 3.3 months of import cover. He noted that Pakistan had successfully repaid $1.4 billion in debt obligations last week, including a Eurobond maturity, calling the transaction a “non-event.” The government’s external financing plan is “clearly laid out and being implemented in a responsible and disciplined manner,” he said.
The minister recalled a detailed meeting last week in Islamabad with his Saudi counterpart, Mohammed bin Abdullah al Jadaan, attended by the State Bank of Pakistan Governor and Pakistan’s ambassador to the US. He had also met al Jadaan in Washington. Aurangzeb said the government had “deliberately refrained from commenting publicly in the absence of formal communication, despite media reports and speculation, as such matters required clarity and joint understanding before being shared.”
Aurangzeb expressed gratitude to Saudi leadership, singling out Crown Prince Mohammed bin Salman, Finance Minister al Jadaan and the Saudi vice finance minister for their “continued support and close cooperation.” He also thanked Pakistan’s political and economic team — Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and the State Bank governor — for their role in securing and operationalising the package.
Sentiment and confidence are of “critical” importance right now, Aurangzeb said, noting strong appreciation from the IMF, World Bank, institutional investors and counterparts in Washington. He highlighted international recognition of Pakistan’s recent diplomatic efforts in facilitating dialogue between parties that had not held face-to-face talks for decades.
The goodwill, combined with the Saudi support, has given Pakistan “renewed momentum and confidence for the economy and the external account, including its commercial aspects,” he said.
Pakistan is pressing ahead with a broader external financing strategy. It recently announced a Global Medium-Term Note program and is preparing its inaugural Panda Bond issuance in China. Aurangzeb said the government is looking at multiple instruments. “We are looking at Eurobond, we are looking at Islamic sukuk, we are looking at dollar-settled rupee-linked bonds.” Officials expect to issue Eurobonds this year and are exploring commercial loans.
A day earlier, Aurangzeb had said reserves remained at roughly 2.8 months of import cover and that maintaining at least that level would be “an important aspect of our overall macro stability as we go forward.” He added that Islamabad has not yet requested any additions or changes to its IMF program in response to economic shocks from the war in the Middle East, though such a step remains a potential option.
Aurangzeb also reaffirmed the government’s focus on macroeconomic stability, meeting all external obligations on time, sustaining the reform momentum and keeping close engagement with bilateral and multilateral partners.
Saudi Arabia Gives Pakistan $3 Billion Fresh Deposits, Extends $5 Billion Facility by Three Years
Alternative headlines:
- Pakistan Secures Saudi Lifeline as $3.5 Billion UAE Repayment Looms
- Aurangzeb Hails Saudi Support at IMF Meetings as Reserves Face UAE Outflow
- Riyadh Bolsters Pakistan Reserves With $3 Billion Top-Up, Longer $5 Billion Term
The story is structured for immediate publication: tight lead, clear context on the UAE repayment pressure, full attribution of all details and quotes to Aurangzeb or the provided announcements, and forward-looking elements on financing plans and IMF compliance — all in the measured, market-conscious tone of a senior Bloomberg correspondent.
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