WASHINGTON: Pakistan is set to receive $3 billion in financial support from Saudi Arabia next week, according to Finance Minister Muhammad Aurangzeb, who also expressed optimism about the country’s external financing outlook.
Speaking on the sidelines of the Spring Meetings of the World Bank and the International Monetary Fund in Washington, Aurangzeb said the inflow would come at a critical time to support Pakistan’s foreign exchange reserves and stabilize external accounts.
He added that approval of the next loan tranche from the IMF Executive Board is expected soon, further strengthening the country’s financial position.
The finance minister also revealed that Saudi Arabia’s existing $5 billion deposit with Pakistan will no longer be subject to annual rollover conditions and will instead be extended for a longer term, providing greater financial certainty.
Aurangzeb noted that Pakistan aims to increase its foreign exchange reserves to around $18 billion under the IMF program, equivalent to approximately 3.3 months of import cover. He emphasized that the government remains committed to meeting all external obligations on time, citing the recent successful repayment of a $1.4 billion Eurobond.
During his visit, Aurangzeb held meetings with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and acknowledged the continued support of Saudi leadership, including Crown Prince Mohammed bin Salman.
Highlighting broader strategy, he said Pakistan is working on diversifying its funding sources through instruments such as global medium-term notes and Panda bonds, while maintaining strong engagement with international financial institutions and investors.
The finance minister stressed that sustaining confidence and a positive economic outlook remains a key priority as Pakistan continues its reform and stabilization efforts.
