Saudi Arabia Boosts Financial Aid to Pakistan Amid Economic Challenges

Saudi Arabia has announced a significant financial boost to Pakistan, pledging an additional $3 billion in aid and extending an existing $5 billion facility. This support comes at a critical time as Pakistan prepares to repay debts and faces pressure on its foreign exchange reserves. Finance Minister Muhammad Aurangzeb confirmed the details during discussions in Washington, highlighting the importance of this assistance for Pakistan's economic stability. The announcement aligns with Prime Minister Shehbaz Sharif's upcoming visits to key nations, emphasizing the urgency of external financing needs. This move is crucial for maintaining Pakistan's financial commitments and supporting its ongoing IMF program.

By Narendra Chaudhary Apr 15, 2026, 16:46 IST

Saudi Arabia's Financial Commitment to Pakistan

In a significant move, Saudi Arabia has announced an additional $3 billion in financial assistance to Pakistan, alongside an extension of an existing $5 billion facility for another three years, as reported by local media. This support arrives at a crucial juncture for Islamabad, which is set to repay $3.5 billion to the United Arab Emirates this month while facing increasing pressure on its foreign exchange reserves.

Finance Minister Muhammad Aurangzeb, speaking from Washington, confirmed the new deposits, stating, "Saudi Arabia has pledged an additional USD 3 billion in deposits for Pakistan and has extended its existing USD 5 billion facility for a further three years." He further explained that the current USD 5 billion Saudi deposit will no longer be subject to the previous annual rollover arrangement, allowing for a more extended term.

This announcement coincides with Prime Minister Shehbaz Sharif's planned official visits to Saudi Arabia, Qatar, and Türkiye from April 15 to 18. Aurangzeb emphasized that this new support from Saudi Arabia is vital for Pakistan's external financing needs, which will aid in bolstering foreign exchange reserves and enhancing the external account.

According to Geo News, Aurangzeb remarked on the sidelines of the World Bank-IMF Spring Meetings 2026 that the IMF has mandated that Pakistan's three primary bilateral creditors—Saudi Arabia, China, and the UAE—must maintain their cash deposits until the ongoing three-year program concludes. He reiterated the government's commitment to uphold reserves in accordance with its market obligations and targets set under the IMF-supported program.