New Saudi financial package and extended deposit aim to ease Pakistan’s external financing pressures
Saudi Arabia has pledged an additional $3 billion in financial support to Pakistan, providing a crucial boost as the country faces rising external financing challenges. The announcement was made by Finance Minister Muhammad Aurangzeb during his visit to Washington, where he highlighted Riyadh’s continued backing of Islamabad’s economic stability efforts.
In addition to the fresh assistance, Saudi Arabia has agreed to extend the tenure of an existing $5 billion deposit, offering Pakistan further relief in managing its balance of payments. Officials say the move will help stabilize foreign exchange reserves and provide breathing space amid looming debt obligations, particularly repayments due to the United Arab Emirates.
A spokesperson for the Saudi Ministry of Finance confirmed that the kingdom would place the new $3 billion deposit to support Pakistan’s external account position. The development underscores strengthening economic and strategic ties between the two countries, which have expanded in recent years across multiple sectors.
Economic analysts view the support as a positive signal of confidence from Saudi Arabia in Pakistan’s financial management. The assistance is also seen as reinforcing Riyadh’s role as a key partner for Pakistan during periods of fiscal pressure, helping the country navigate short-term economic challenges while maintaining stability in its external accounts.
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