Pakistan Secures $3bn Saudi Deposit Rollover, Aurangzeb Confirms

Pakistan – (Staff Reporter/Web Desk) – Pakistan secures $3bn in a rollover from Saudi Arabia, Finance Minister Muhammad Aurangzeb has confirmed. The news comes after the United States declined a request for a $10 billion Liquidity Support Programme.

He spoke to the Senate Standing Committee on Finance at Parliament House on Wednesday. He said the country’s external accounts remain in a comfortable position.

“With or without $10 billion from the USA, we are in a comfortable position,” Aurangzeb told senators. He added that the request was neither a credit line nor a guarantee.

He said the support would be welcome if it came. If not, he said, the government can manage its external account without it.

The minister also confirmed the Saudi rollover. However, he did not share how long it will last. Reports say it was granted for a few months.

Sources say Pakistan holds $4 billion in SAFE deposits from China. Saudi Arabia holds $3 billion, and Kuwait holds $300 million.

Saudi Arabia has given deposits worth $8 billion in total. Of these, $5 billion was rolled over until 2028. The remaining $3 billion may have been extended for one year, covering FY27.

Finance Secretary Imdad Ullah Bosal briefed the committee on repayments. Gross external financing repayments stand at $21.5 billion. This includes $17 billion in principal and $4 billion in interest.

He said $7.3 billion will come as bilateral rollovers. After that, $14 billion in repayments remains. Of this, $3.2 billion is commercial refinancing, which Pakistan may skip because of its high cost.

The ministry said Pakistan has already repaid $5 billion in five months. Only $6 billion is left to repay in the remaining seven months of this fiscal year.

The committee also heard about the Annual Borrowing Plan. Projected public debt is Rs86.7 trillion, with additional borrowing of Rs6.86 trillion. Gross financing needs are Rs28.65 trillion.

Public debt has fallen from 75.1% of GDP in FY2023 to 68.6% in FY2026. Officials said the country will meet about $5 billion in debt payments over the next six months. Foreign exchange reserves stand at $21.5 billion.

Committee Chairman Senator Saleem Mandviwalla also raised a complaint from parliamentarians. They face trouble getting foreign exchange for personal travel. He asked the State Bank of Pakistan to review its rules, including checks for Politically Exposed Persons.