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Pakistan’s finance minister said late Tuesday that Saudi Arabia has agreed to provide $3 billion in financial assistance to help Islamabad shore up foreign reserves ahead of major debt repayments.
Finance Minister Muhammad Aurangzeb, who is in Washington for staff-level talks with the International Monetary Fund, said Riyadh will transfer the funds next week, according to Pakistani broadcaster Geo News.
“We have held a detailed meeting with the Saudi finance minister today. He has clearly told (me) that $3 billion will be provided (to Pakistan) as additional deposits,” Aurangzeb said.
The announcement comes as Pakistan is due to repay $3.5 billion in debt to the United Arab Emirates by the end of the month.
Turkish news agency Anadolu reported last week that Saudi Arabia and Qatar are expected to provide Pakistan with a combined $5 billion in financial support, helping Islamabad manage weak foreign reserves and meet external payment obligations through June.
Saudi Arabia has assured Pakistan of financial backing amid rising external pressures and higher costs linked to tensions in the Middle East.
Last week, Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan visited Islamabad and met Prime Minister Shehbaz Sharif to discuss the assistance package.
Pakistan’s foreign exchange reserves remain strained due to rising import costs, with officials warning reserves could decline further without fresh inflows.
Pakistan’s liquid foreign exchange reserves currently stand at approximately $21.89 billion.
Of that total, the State Bank of Pakistan holds $16.4 billion, while commercial banks hold roughly $5.49 billion.
Aurangzeb said Pakistan made $1.4 billion in external payments last week.
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