Pakistan secures $3 billion from Saudi Arabia as ties deepen

Pakistan received a $3 billion financial injection from Saudi Arabia to bolster its foreign exchange reserves, officials confirmed. This support arrives as Islamabad prepares to meet a $3.5 billion debt obligation to the United Arab Emirates (UAE) this month, which accounts for approximately 18% of its reserves.

“We can confirm that Saudi Arabia has agreed to a $3 billion deposit with Pakistan to support their balance of payments,” stated a Saudi Ministry of Finance spokesperson, as reported by Reuters.

The agreement also extends an existing $5 billion Saudi deposit for an unspecified duration, according to Pakistan’s finance minister, Muhammad Aurangzeb. This move coincides with the visit of Pakistani Prime Minister Shehbaz Sharif to Saudi Arabia, alongside leaders from Qatar and Turkey. During the trip, Saudi Finance Minister Mohammed Al-Jadaan was already in Islamabad, Reuters noted.

Over the years, Pakistan and Saudi Arabia have worked to strengthen both economic and security partnerships. In 2018, Riyadh provided a $6 billion aid package to Islamabad, and a mutual defense pact was signed last year, framing aggression against either nation as an attack on both.

Pakistan has increasingly positioned itself as a mediator in Middle East diplomacy, aligning with Saudi Arabia against Iranian threats. Recent tensions saw Islamabad deploy fighter jets and support aircraft to Riyadh following Iranian strikes on critical energy facilities in the region.

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