ISLAMABAD – Saudi Arabia and Qatar have pledged $5 billion in financial support to Pakistan, offering relief to the country’s strained foreign exchange reserves as it prepares to meet significant external payment obligations in the coming weeks, official sources said.
The assistance comes at a critical time, with Islamabad scheduled to repay $3.5bn to the United Arab Emirates by the end of the month, part of a broader $4.8bn repayment burden falling due in April. Officials said the expected inflows would help stabilise reserves and enable the country to meet its external commitments without immediate financial stress.
The development follows a meeting in Islamabad on Friday between Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and Prime Minister Shehbaz Sharif. The meeting was attended by senior officials, including Foreign Minister Ishaq Dar and Chief of Army Staff Asim Munir, and focused on economic cooperation as well as regional developments.
Although no formal agreements were signed, officials indicated that discussions on financial assistance had been underway between the finance ministries of Pakistan and Saudi Arabia prior to the meeting. The latest assurance is seen as a continuation of those engagements.
Pakistan has also sought additional support beyond immediate cash assistance, including an expansion of existing Saudi deposits held with the State Bank of Pakistan and an extension of the oil financing facility, which is due to expire later this month. Officials said these measures were important for maintaining liquidity and managing import costs, particularly for energy.
Officials warned that Pakistan’s foreign exchange reserves remain under pressure due to rising import bills, global market volatility and geopolitical tensions in the Middle East. Without fresh inflows, reserves could decline further in the near term, potentially falling to around $11.5bn.
The pledged support from Saudi Arabia and Qatar is expected to provide a buffer against such risks, allowing Pakistan to manage its immediate financial obligations while continuing engagement with international partners ahead of key economic discussions in Washington.
The development underscores Pakistan’s continued reliance on support from Gulf allies during periods of economic stress, as authorities seek to maintain financial stability and avoid disruptions to external payments.
