Pakistan In Talks to Convert Saudi Arabia’s $5 Billion Deposit Into Investment

Pakistan has begun discussions with Saudi Arabia to convert its $5 billion deposit into a long-term investment as part of efforts to ease pressure on the country’s external finances and strengthen economic ties, according to government sources.

Sources told ProPakistani that Pakistan’s economic team is holding high-level talks with Saudi officials on measures to reduce balance of payments pressures and improve long-term economic stability. The discussions also include reviving negotiations on Saudi Arabia’s deferred oil payment facility.

According to the sources, the government wants to encourage greater Saudi investment in various sectors instead of relying solely on financial deposits. Officials are also exploring new investment opportunities with Saudi investors.

The sources said Saudi officials have shared an economic framework with Pakistan’s economic team that focuses on structural reforms, sustainable economic growth, and long term macroeconomic stability.

The framework reportedly includes a roadmap extending to 2035, aimed at addressing Pakistan’s balance of payments challenges and increasing the country’s exports to around $100 billion over the long term.

The discussions are part of ongoing economic engagement between the two countries, with Pakistan seeking to reduce external financing pressures while attracting more foreign direct investment and expanding long term economic cooperation with Saudi Arabia. As of now, no formal agreement has been announced by either government.