Saudi Arabia Extends $5 Billion Deposit Boosts Pakistan Financial Stability

ISLAMABAD: (Web Desk) – Federal Minister for Finance Muhammad Aurangzeb has announced that Saudi Arabia will provide an additional $3 billion deposit to Pakistan, with funds expected to be disbursed in the coming week. He also confirmed that the existing $5 billion Saudi deposit will be extended for a longer duration instead of the previous annual rollover arrangement.

Speaking in Washington, D.C. on the sidelines of the World Bank–IMF Spring Meetings 2026, the minister said the financial support comes at a crucial time and will help strengthen Pakistan’s foreign exchange reserves and external account stability. He reiterated the government’s target of building reserves to around $18 billion by the end of the fiscal year, equivalent to approximately 3.3 months of import cover.

Aurangzeb noted that Pakistan recently repaid its $1.4 billion Eurobond on schedule, reaffirming the country’s commitment to meeting all external obligations. He emphasized that the government’s external financing strategy is well-defined and being implemented with discipline.

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The minister also highlighted his meetings with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, thanking the Saudi leadership, including Crown Prince Mohammed bin Salman, for their continued support. He said the assistance reflects strong bilateral ties and confidence in Pakistan’s economic direction.

He further noted growing international confidence in Pakistan, with positive feedback from institutions such as the IMF and World Bank, alongside efforts to diversify funding sources through initiatives like the Global Medium-Term Note programme and the planned Panda Bond issuance.