Saudi Arabia has assured Pakistan of extending financial support to help the country manage pressures arising from the Middle East conflict, as Islamabad faces nearly $5 billion in debt repayments and works to stabilise its external account amid rising import costs.
The development came hours after Prime Minister (PM) Shehbaz Sharif secured relief from local oil refineries, which agreed to give up a portion of their windfall gains, later passed on to consumers.
During his visit to Islamabad, Saudi Finance Minister (FM) Mohammed bin Abdullah Al-Jadaan met the prime minister and discussed key economic challenges facing Pakistan.
Officials said that the visiting minister conveyed Riyadh’s commitment to supporting Pakistan financially and also reiterated confidence in Islamabad’s role in facilitating talks between the United States (US) and Iran.
While no formal financial package was finalised during the delegation-level talks, officials said that the Finance Minister Muhammad Aurangzeb had already discussed proposals with his Saudi counterpart earlier in the week.
Pakistan has sought at least $5 billion in loans from the kingdom along with an oil financing facility of $1.2 billion annually. The existing Saudi oil facility is set to expire in April, and Pakistan has requested an extension for another five years. The country is also utilising a $5 billion Saudi cash deposit and is aiming to increase the amount to maintain foreign exchange reserves.
The government is scheduled to repay $4.8 billion in debt this month, including $3.5 billion owed to the United Arab Emirates (UAE). Officials indicated that without fresh inflows, reserves could drop to around $11.5 billion.
The UAE had earlier assured the International Monetary Fund (IMF) it would maintain its financial exposure to Pakistan until the bailout programme ends in September 2027.
Officials said that the prime minister had asked Finance Minister Aurangzeb to delay his visit to Washington DC by two days due to the Saudi minister’s visit. Aurangzeb was due to attend the IMF-World Bank spring meetings.
Before travelling, the finance minister also spoke with his Saudi counterpart over the phone to seek financial support.
According to an official statement, the Saudi finance minister held a one-day visit to Islamabad and met the prime minister. Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of Defence Forces (CDF) Field Marshal Syed Asim Munir, Finance Minister Muhammad Aurangzeb, and Petroleum Minister Ali Pervaiz Malik were also present.
The prime minister conveyed his regards to King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, and recalled his recent conversation with the crown prince.
The Prime Minister’s Office (PMO) said that the premier appreciated the kingdom’s continued economic support and highlighted its role in maintaining Pakistan’s economic stability.
It added that Pakistan remained committed to strengthening cooperation with Saudi Arabia in trade, investment and economic sectors.
The Saudi finance minister also reaffirmed the kingdom’s intent to deepen ties with Pakistan in line with the vision of Crown Prince Mohammed bin Salman.
