Saudi Arabia has assured Pakistan of full financial support to help manage economic pressures arising from the Middle East conflict, offering relief at a time when Islamabad is facing nearly $5 billion in debt repayments and rising import costs.
The assurance came during a meeting in Islamabad between Prime Minister Shehbaz Sharif and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. According to officials, the visiting minister reiterated the kingdom’s trust in Pakistan and its role in mediating talks between the United States and Iran.
Officials said Pakistan had requested at least $5 billion in fresh loans along with an oil financing facility of $1.2 billion per year. The current Saudi oil facility is set to expire this month, and Islamabad has asked for a five-year extension.
Pakistan is already availing a $5 billion Saudi cash deposit facility and is reportedly seeking to at least double the amount to help maintain foreign exchange reserves. The country is due to repay $4.8 billion this month, including $3.5 billion owed to the United Arab Emirates.
Without fresh inflows, officials fear reserves could fall to around $11.5 billion, adding pressure to the external account. The development comes at a critical time as Pakistan works to maintain macroeconomic stability and meet its commitments under the International Monetary Fund program.
The Prime Minister’s Office said both sides also discussed expanding cooperation in trade, investment, and economic development, while Saudi Arabia reaffirmed its commitment to strengthening longstanding bilateral ties with Pakistan.