Saudi Arabia has increased its financial support for Pakistan, a development seen as positive for the country’s economic stability. According to Finance Minister Senator Muhammad Aurangzeb, this support will help strengthen Pakistan’s external financing position at a critical time.
Additional $3 Billion Deposit Commitment
Saudi Arabia has committed an additional $3 billion deposit for Pakistan, which is expected to be disbursed in the coming week. This inflow is likely to provide significant support to Pakistan’s foreign exchange reserves and overall financial stability.
Extension of Existing $5 Billion Facility
In addition to the new commitment, the existing $5 billion Saudi deposit has been extended on a long-term basis. Earlier, this arrangement was subject to an annual rollover, but it has now been restructured to provide more stable and sustained financial backing.
Focus on Economic Stability
The finance minister explained that this support comes at a crucial time as Pakistan continues efforts to strengthen its external accounts and improve macroeconomic stability. The government remains focused on maintaining financial discipline under its ongoing economic reform programme.
IMF Programme and Reserve Targets
Pakistan aims to build foreign exchange reserves of around $18 billion by the end of the fiscal year, which would provide roughly 3.3 months of import cover. This target is part of commitments under the IMF-supported programme and is key to ensuring economic resilience.
Strengthening Pakistan Saudi Economic Ties
The minister also highlighted growing financial cooperation between Pakistan and Saudi Arabia. Recent high-level meetings in Washington with Saudi officials further strengthened bilateral economic relations, signaling continued support and coordination between the two countries.
