ISLAMABAD – Saudi Arabia has rolled over its $3 billion financial support to Islamabad, ensuring the country’s foreign exchange reserves remain intact and providing much-needed breathing space as the government grapples with mounting external financing pressures.
Federal Finance Minister Muhammad Aurangzeb confirmed the development after a meeting of the Senate Standing Committee on Finance, ending days of speculation surrounding the fate of the loan, which had matured earlier this week. Responding to questions from reporters, the minister simply remarked, “Everything is fine.”
Saudi Arabia originally extended the $3 billion deposit in April for three months, enabling Pakistan to repay a maturing obligation to the United Arab Emirates (UAE). Although the facility expired earlier this week, the Finance Ministry had remained silent on its renewal until the minister’s confirmation.
The announcement follows Aurangzeb’s recent visit to KSA alongside Federal Minister for Energy Sardar Awais Leghari, where both sides discussed expanding financial cooperation, economic ties, and strategic bilateral issues.
The rollover comes at a crucial time for Pakistan’s economy, which remains under the $7 billion International Monetary Fund (IMF) programme. Under commitments made to the IMF, Saudi Arabia, China, and the UAE had pledged to maintain $12.5 billion in deposits with the State Bank of Pakistan until September next year.
However, after the UAE scaled back its financial support, Saudi Arabia stepped in to strengthen its commitment, increasing its overall financial exposure to Pakistan to $8 billion, reinforcing its role as Islamabad’s most significant financial partner.
Pakistan reportedly requested Saudi Arabia to provide a $6.7 billion deferred oil payment facility for 15 years, aimed at safeguarding the country’s energy security amid rising geopolitical tensions across the Middle East.
Government sources say Islamabad is simultaneously exploring options to extend the maturity of external debt while also restructuring repayments owed to Chinese companies operating power plants under the China-Pakistan Economic Corridor (CPEC) by staggering outstanding energy-sector liabilities.
The successful rollover of the Saudi loan averts pressure on Pakistan’s foreign exchange reserves but also signals continued confidence from one of Islamabad’s closest economic partners at a time when the government is relying heavily on external financing, IMF-backed reforms, and strategic regional support to stabilise the economy.
Saudi Arabia rolls over $3 billion deposit to support Pakistan’s economy
