ISLAMABAD – Saudi Arabia once again stepped forward with massive economic support, announcing $1 billion oil facility for the current fiscal year 2025–26 and rollover of $5 billion in deposits already parked with the State Bank of Pakistan.
According to senior Finance Ministry officials, $1 billion oil facility, equal to nearly Rs290 billion, will ease pressure on Pakistan’s fragile external account and help ensure steady energy supply amid surging global oil prices.
KSA’s financial backing doesn’t stop there. Officials confirmed that Saudi Arabia will roll over $5 billion in time deposits, which had been due for repayment soon $2 billion in December 2025 and another $3 billion in June 2026. These funds, provided as budgetary support, are placed at an interest rate of 4% and are renewed annually, signaling Riyadh’s continued trust in Islamabad’s economic management.
During first quarter of FY2025–26, Islamabad already benefited from more than Rs85 billion worth of Saudi oil facility, roughly $300 million, with the Kingdom extending $100 million (Rs28.37 billion) worth of oil financing each month.
Finance officials revealed that Saudi deposits now total a staggering Rs1.45 trillion in Pakistani currency, a cushion that continues to stabilize the country’s reserves and reassure global lenders.
Economic observers see this move as yet another testament to Saudi Arabia’s unwavering support for its long-time ally. The development comes at a crucial time when Pakistan is pushing forward with economic reforms under IMF oversight, striving to restore investor confidence and stabilize its financial sector.
