Islamabad: Saudi Arabia and Qatar have agreed to provide Pakistan with $5 billion in financial assistance, offering a crucial lifeline to Islamabad as it faces significant debt repayment obligations and dwindling foreign reserves. The news was confirmed by Pakistani official sources to Anadolu Agency.
According to Anadolu Agency, this financial intervention comes at a critical time for Pakistan, which is required to repay a $3.5 billion debt to the UAE by the end of the month. The assurance of support from Riyadh arrives amidst increasing external pressures and the economic challenges presented by the ongoing tensions in the Middle East.
In a significant diplomatic engagement, Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan met with Pakistan Prime Minister Shehbaz Sharif in Islamabad. The meeting, which took place on Friday night, was attended by senior Pakistani officials, including Foreign Minister Ishaq Dar and Chief of Army Staff Gen. Asim Munir. The discussions centered around economic cooperation and regional developments, particularly the ongoing rift between Saudi Arabia and the UAE.
Pakistan has sought additional financial backing, requesting an expansion of existing cash deposits and an extension of its oil financing facility, which is due to expire later this month. Although no formal agreements were announced, officials indicated that discussions regarding financial support had been ongoing between the finance ministries of both nations.
Pakistan’s foreign exchange reserves are under significant pressure due to rising import costs, and there are concerns that without fresh financial inflows, the reserves could see a further decline in the coming weeks. The government is actively engaging with international partners ahead of pivotal financial meetings in Washington.
Sources informed Anadolu Agency that the financial assistance from Saudi Arabia and Qatar will enable Pakistan to manage its weak foreign reserves more effectively while ensuring the timely execution of external payments. With the pressure to settle $3.5 billion in debt to the UAE by the end of April, following a request from Abu Dhabi for immediate settlement, this support is seen as essential for Pakistan’s economic stability.
Currently, Pakistan’s foreign exchange reserves stand at approximately $16.4 billion, highlighting the need for additional financial support to stabilize the economy and meet international financial obligations.