Saudi Arabia announces additional support of $3 billion for Pakistan, extends $5 billion deposit

Washington (Web Desk): Finance Minister Muhammad Aurangzeb has revealed that Saudi Arabia has pledged an additional $3 billion in deposits for Pakistan, with the funds likely to be released in the coming week.

He shared this update while speaking to journalists in Washington D.C, describing it as a timely development for the country’s financial position.

The finance minister further explained that the previously existing $5 billion Saudi deposit will no longer operate under its earlier yearly rollover condition and will instead be extended over a longer timeframe, providing more stability and certainty to Pakistan’s external financing outlook.

“This fresh support arrives at a particularly important moment, as it will help bolster foreign exchange reserves and improve the country’s external account,” he said.

Aurangzeb reaffirmed the government’s commitment to keeping reserves at levels consistent with market expectations and obligations under the International Monetary Fund (IMF) programme, including the target of reaching approximately $18 billion in reserves by the end of the fiscal year.

The finance minister also highlighted that Pakistan successfully cleared its $1.4 billion Eurobond repayment last week, reiterating that the government remains fully dedicated to meeting all upcoming external repayments and maturities on schedule.

He stressed that the country’s external financing roadmap is well-defined and is being executed in a prudent and disciplined way.

Expressing appreciation, Aurangzeb thanked the leadership of Saudi Arabia for its continued cooperation and support, acknowledging the efforts that made the financial arrangement possible.

He also recognized the contribution of Pakistan’s political and economic leadership in securing and implementing the package.

The finance minister added that Pakistan is receiving strong recognition from global financial institutions such as the International Monetary Fund and the World Bank, as well as from investors and international counterparts he met during his visit.

He noted that the global community is especially acknowledging Pakistan’s recent diplomatic role in facilitating dialogue between parties that had not engaged directly for decades.

The finance minister concluded by saying that this growing international confidence, combined with Saudi Arabia’s timely financial assistance, is giving Pakistan renewed momentum and optimism for its economic trajectory and external sector, including its commercial outlook.