ISLAMABAD (Web Desk) – Amid growing economic pressure and rising regional tensions, Pakistan turned to Saudi Arabia seeking long-term financial support, and the government proposed converting existing $5 billion short-term deposits into a 10-year facility.
A report shared by a private TV channel said Pakistan formally presented eight major requests for long-term economic cooperation to Saudi Arabia, in a move that could significantly reshape its financial stability during a period of mounting economic pressure and geopolitical uncertainty.
One of the most critical proposals is converting the existing $5 billion short-term deposits provided by Saudi Arabia into a 10-year long-term financial facility. Such a shift would ease immediate pressure on Pakistan’s foreign exchange reserves and provide the country with much-needed financial breathing space.
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Another key request involves expanding the deferred oil payment facility currently offered by Saudi Arabia. Pakistan has asked that the program be increased dramatically from $1.2 billion to $5 billion, while also extending the repayment period, allowing the country to secure vital energy supplies without immediate financial strain.
The South Asian nation suggested securitizing up to $10 billion of remittances sent by overseas Pakistanis, a move aimed at unlocking additional liquidity for the economy. Officials said these proposals come at a time when Pakistan’s economic challenges are intensifying due to rising geopolitical tensions, particularly linked to the ongoing conflict involving Iran, which government sources claim has escalated during a war led by the United States and Israel against Iran.
At same time, Islamabad is engaged in high-stakes negotiations with the International Monetary Fund (IMF) to complete the third review of its $7 billion Extended Fund Facility (EFF) program, a crucial step for unlocking further financial support and stabilizing the economy.
Islamabad and Riyadh had already been in talks over a broader economic cooperation package, but the rapidly evolving regional situation has added urgency to these negotiations.
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