Saudi Arabia Boosts Pakistan’s Finances with $8 Billion Support Package

Saudi Arabia has reinforced its financial backing for Pakistan by extending an existing $5 billion deposit and committing an additional $3 billion, in a move aimed at supporting the country’s economic stability during a challenging period.

The support package, confirmed by Pakistan’s Finance Minister Muhammad Aurangzeb, includes a longer-term extension of the $5 billion deposit held at the State Bank of Pakistan. The extension replaces the earlier arrangement under which the deposit was subject to annual renewal.

Aurangzeb announced the development while speaking to media in Washington, DC, on the sidelines of the World Bank–IMF Spring Meetings 2026. He said the additional $3 billion commitment comes at a critical time for Pakistan’s external financing needs and will help strengthen the country’s foreign exchange reserves.

The financial assistance reflects ongoing cooperation between the two countries and aligns with directives from Saudi leadership, including King Salman and Mohammed bin Salman. Officials said the move underscores the Kingdom’s commitment to supporting Pakistan’s economic resilience amid global uncertainty.

According to the finance minister, the inflow will provide stability to Pakistan’s external account and help maintain reserve levels in line with commitments under its programme with the International Monetary Fund. Islamabad is targeting foreign exchange reserves of around $18 billion as part of its broader economic strategy.

The extension of the existing deposit is expected to ease short-term pressure on the country’s balance of payments, while the fresh funding will add liquidity at a time when global economic conditions remain volatile. Pakistan has faced ongoing challenges linked to inflation, currency pressures and rising external debt obligations.

Saudi Arabia has been a longstanding financial partner for Pakistan, frequently stepping in with deposits, oil financing and other forms of assistance during periods of economic stress. The latest move signals continued support as Islamabad works to stabilise its economy and restore investor confidence.

Officials said the financial package is also intended to strengthen bilateral ties and promote economic cooperation between the two nations. The additional funding is expected to support broader economic activity and, over time, improve living conditions for citizens by easing financial pressures on the government.

With reserves under scrutiny and external obligations mounting, the latest commitment from Riyadh provides a timely boost for Pakistan as it navigates a complex economic landscape.