Pakistan has secured a crucial financial lifeline as Saudi Arabia pledged $3 billion in additional support to help stabilize the country’s economy. The move comes at a critical time as Pakistan faces mounting external payments and pressure on foreign exchange reserves.Saudi Arabia has agreed to provide a $3 billion deposit to Pakistan, aimed at supporting its balance of payments and easing immediate financial pressures.

The announcement was confirmed by both Saudi officials and Finance Minister Muhammad Aurangzeb. This fresh support comes in addition to Riyadh’s decision to extend the tenure of an existing $5 billion deposit, further reinforcing Pakistan’s financial stability. Officials say the assistance reflects deepening economic and strategic ties between the two countries.

Pakistan is currently facing a $3.5 billion repayment obligation to the United Arab Emirates, which accounts for nearly 18% of its foreign exchange reserves. As of March 27, reserves stood at around $16.4 billion.Under its $7 billion program with the International Monetary Fund, Pakistan is targeting reserves of over $18 billion by June -- making the Saudi support particularly timely. 

Aurangzeb emphasized that the funding will help strengthen Pakistan’s external account and ensure reserves remain aligned with IMF commitments and market obligations. The finance minister made the announcement while attending the World Bank–IMF Spring Meetings 2026 in Washington, DC. During his visit, Aurangzeb held detailed discussions with Saudi Finance Minister Mohammed Al-Jadaan, following an earlier meeting in Islamabad.

He noted that Pakistan had deliberately avoided commenting publicly on the support package until formal confirmation was received, despite media speculation.Aurangzeb expressed gratitude to Saudi leadership, particularly Crown Prince Mohammed bin Salman and senior finance officials, for their continued cooperation and timely assistance.

Credit: Independent News Pakistan (INP)