Washington, DC: Saudi Arabia has pledged a fresh $3 billion deposit for Pakistan and extended its existing $5 billion financial facility for three years until 2028, Finance Minister Muhammad Aurangzeb announced on the sidelines of the World Bank–IMF Spring Meetings 2026 in Washington, DC.
The move comes at a critical time as Pakistan prepares to repay a $3.5 billion loan to the United Arab Emirates, placing pressure on foreign exchange reserves and IMF programme targets. Aurangzeb noted that the extended Saudi facility would no longer require annual rollovers, providing longer-term financial stability.
He described the Saudi support as vital for reinforcing Pakistan’s external account and strengthening foreign exchange reserves, which the government aims to raise to around $18 billion—equivalent to approximately 3.3 months of import cover—by the end of the fiscal year.
The minister also highlighted Pakistan’s recent repayment of a $1.4 billion Eurobond, reaffirming the government’s commitment to meeting all external obligations in a timely and disciplined manner. He emphasized that the country’s external financing strategy remains on track.
Aurangzeb revealed that he held detailed discussions with his Saudi counterpart, Mohammed bin Abdullah Al Jadaan, alongside officials including the State Bank of Pakistan governor and Pakistan’s envoy in Washington.
Expressing gratitude, he acknowledged the continued support of Saudi leadership, particularly Mohammed bin Salman, for their role in facilitating the financial package.
The finance minister noted growing international confidence in Pakistan’s economy, with positive feedback from institutions such as the International Monetary Fund and the World Bank, as well as global investors.
He further outlined Pakistan’s broader financing plans, including the Global Medium-Term Note (GMTN) programme, a planned Panda Bond issuance, and potential Eurobond and sukuk offerings. He added that while no changes have yet been requested to Pakistan’s $7 billion IMF programme, adjustments remain an option if required.
Concluding his remarks, Aurangzeb reaffirmed the government’s commitment to macroeconomic stability, sustained reforms, and continued engagement with bilateral and multilateral partners to ensure long-term economic resilience.
