Pakistan has sought several financial arrangements from Saudi Arabia, including converting the existing $5 billion deposits into a 10-year facility and expanding the oil supply arrangement on deferred payment terms, news reports have said. 

 

The proposals were shared with Riyadh as part of discussions on long-term economic cooperation while Pakistan faces external financing needs and holds talks with the International Monetary Fund over the third review of the $7 billion Extended Fund Facility programme.

 

One of the proposals involves converting the $5 billion deposits currently held with the State Bank of Pakistan into a long-term facility with a tenure of 10 years. Officials said the proposal also includes favourable pricing for the arrangement.

 

Pakistan has also asked Saudi authorities to expand the existing oil supply facility on deferred payment terms from $1.2 billion to $5 billion. Under the proposal, the repayment period for each tranche could be extended from one year to three years.

 

Another proposal submitted by Pakistan involves securitising up to $10 billion in remittances sent by overseas Pakistanis. Officials said the arrangement could help increase foreign exchange reserves and reduce reliance on external borrowing.

 

Pakistan has also requested Riyadh to consider providing a guarantee for future international Sukuk issuances. Officials said such a guarantee could allow the country to access global capital markets at lower borrowing costs.

 

In addition, Pakistan has asked Saudi Arabia to provide a concessional credit line for the Export-Import Bank of Pakistan, which was established to support exports and facilitate trade financing.

 

Another proposal calls for Saudi authorities to waive bank guarantee requirements for import-related transactions between the two countries to facilitate trade operations.

 

Pakistan has also invited Saudi investment through the Kingdom’s Public Investment Fund to explore investment opportunities in different sectors of the economy.

 

Officials also said Pakistan sought Saudi support in facilitating adjustments to Pakistan’s primary surplus targets under the IMF programme to accommodate tax rationalisation measures while managing fiscal pressures.