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Saudi Arabia will provide an additional $3 billion deposit to Pakistan’s central bank next week while extending the maturity of a separate $5 billion loan, according to Pakistan’s finance minister. The measures aim to reinforce foreign currency holdings as the country prepares to repay $3.5 billion to the United Arab Emirates in April. Finance Minister Muhammad Aurangzeb, speaking after meetings at the World Bank and IMF Spring gatherings in Washington, welcomed the timely assistance from Riyadh.
Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, a level that leaves limited room for the impending UAE repayment, IMF data show. The country recently retired a $1.4 billion Eurobond without disruption, a development Aurangzeb termed a “non-event.” Officials are targeting reserves above $18 billion by the end of the fiscal year in June.[[1]](https://www.reuters.com/world/middle-east/pakistan-says-saudi-arabia-pledges-3-billion-more-support-it-2026-04-15/)
The Ministry of Finance places Pakistan’s total external debt and liabilities at $138 billion, with public debt around $92 billion. Roughly 75 percent of that portfolio consists of concessional or long-term financing from multilateral and bilateral partners, while commercial loans and long-term Eurobonds each account for about 7 percent. An IMF staff report published in May noted that debt remains sustainable provided authorities maintain sound policies and secure continued external financing.[[2]](https://www.imf.org/-/media/files/publications/cr/2026/english/1pakea2026001.pdf)
Saudi Arabia has repeatedly extended financial support to Pakistan during periods of economic stress, a Reuters assessment found. In 2018 Riyadh unveiled a $6 billion package that combined a $3 billion central-bank deposit with $3 billion in deferred-payment oil supplies. The latest deposit and loan extension add to that pattern of bilateral backing that has helped Islamabad manage balance-of-payments pressures while it implements a $7 billion IMF extended fund facility agreed in 2024.[[1]](https://www.reuters.com/world/middle-east/pakistan-says-saudi-arabia-pledges-3-billion-more-support-it-2026-04-15/)
Aurangzeb stated that “Saudi Arabia’s timely financial support provided important momentum and confidence” for both the domestic economy and external standing. The minister reiterated Pakistan’s commitment to meet all external obligations under the IMF programme, which saw further disbursements approved after the third review completed in May. By early May reserves had climbed above $21 billion, according to State Bank of Pakistan figures released shortly after the Saudi announcement.[[3]](https://www.facebook.com/StateBankPakistan/posts/total-liquid-foreign-reserves-held-by-the-country-stood-at-us2134-billion-as-of-/1423116753181257/)
The IMF Executive Board completed its third review of the arrangement in May, enabling fresh drawings that brought total disbursements under the EFF and Resilience and Sustainability Facility to about $4.8 billion. Projections in the accompanying staff report forecast gross reserves reaching $17.5 billion by the end of fiscal 2026 before rising further the following year. Pakistan’s outstanding credit to the Fund stood at roughly $8.1 billion in early July, placing it among the IMF’s largest debtors.
