Pakistan says Saudi Arabia to provide $3bn support, extend $5bn deposit

16/04/2026 01:26 AST

Pakistan's Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced Wednesday that Saudi Arabia has committed $3 billion in additional financial support to Pakistan.

Aurunzageb also said 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 annoucement while talking to members of the media in Washington, D.C., on the sidelines of the World Bank-IMF Spring Meetings 2026.

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 Pakistani 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.

The minister noted that Pakistan had successfully repaid its $1.4 billion Eurobond last week, describing it as a "non-event," and reaffirmed that the government remained fully committed to meeting all upcoming external obligations and maturities on time.

Aurangzeb said that he, along with the governor, State Bank of Pakistan and Pakistan's Ambassador to the US, had held a detailed meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan.

He recalled that he had also met the Saudi finance minister in Islamabad the previous Friday, but noted that 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.

The finance minister expressed profound gratitude to the leadership of the Kingdom of Saudi Arabia, particularly Crown Prince Mohammed bin Salman, Saudi Finance Minister Al-Jadaan, and the Saudi vice finance minister, for their continued support and close cooperation.

Arab News