Saudi Arabia has committed an additional $3 billion to Pakistan, aiding the South Asian nation in managing its financial obligations and bridging a significant gap linked to an upcoming debt repayment to the United Arab Emirates. This deposit supplements Riyadh's extension of a $5 billion rollover arrangement. The move signifies a strengthening relationship between Saudi Arabia and Pakistan.
Pakistan's Finance Minister, Muhammad Aurangzeb, confirmed the deposit, stating it will support the country's balance of payments and bolster foreign exchange reserves. The nation faces a $3.5 billion repayment to the UAE this month, a sum that has strained its foreign exchange reserves. These reserves stood at approximately $16.4 billion as of March 27. Under its IMF program, Pakistan aims for foreign exchange reserves exceeding $18 billion by June. Saudi Finance Minister Mohammed Al-Jadaan recently visited Pakistan, underscoring this economic support.
Saudi Arabia has a history of assisting Pakistan during economic challenges, notably with a $6 billion package in 2018. This latest support comes at a critical juncture for Pakistan's external financing needs and reinforces its commitment to maintaining reserves in line with IMF program requirements.