Saudi Arabia to extend $3B financial support to Pakistan
Pakistan’s finance minister confirmed late Tuesday that Saudi Arabia has agreed to provide $3 billion in financial assistance to Pakistan to help ease pressure on its foreign reserves amid looming debt repayments to the United Arab Emirates.
Muhammad Aurangzeb, currently in Washington for staff-level talks with the International Monetary Fund, told reporters that Riyadh is expected to transfer the funds next week, News.Az reports, citing Anadolu.
“We have held a detailed meeting with the Saudi finance minister today. He has clearly told (me) that $3 billion will be provided (to Pakistan) as additional deposits,” Aurangzeb said.
The assistance comes as Pakistan prepares to repay $3.5 billion in debt to the UAE by the end of the month.
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Earlier reports indicated that Saudi Arabia and Qatar could jointly provide up to $5 billion in financial support, helping Islamabad manage external payments and stabilize reserves through June.
Riyadh has reiterated its support for Pakistan as the country faces mounting external pressures and rising costs linked to ongoing tensions in the Middle East.
Last week, Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan visited Islamabad and held talks with Pakistani Prime Minister Shehbaz Sharif on financial assistance.
Pakistan’s foreign exchange reserves remain under strain due to rising import costs, with officials warning that reserves could decline further without fresh inflows. The government is also engaging with international partners ahead of key financial discussions in Washington.
A senior official said Pakistan will repay $3.5 billion to the UAE by the end of April following a request from Abu Dhabi for immediate settlement.
Pakistan’s total liquid foreign exchange reserves currently stand at around $21.89 billion, including $16.4 billion held by the State Bank of Pakistan and approximately $5.49 billion held by commercial banks.
According to Aurangzeb, Pakistan made $1.4 billion in external payments last week.
By Nijat Babayev
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