Saudi Arabia and Qatar have assured Pakistan of $5 billion in financial assistance, providing support to the country’s foreign exchange reserves as it prepares to meet external payment obligations in the coming weeks, reports quoted sources.

 

The development comes as Pakistan is set to repay $3.5 billion to the United Arab Emirates (UAE) by the end of the month as part of a total $4.8 billion in debt repayments due in April.

 

The assurance followed a meeting between Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and Prime Minister (PM) Shehbaz Sharif in Islamabad on Friday night. The meeting, which came ahead of Islamabad Talks, was attended by senior officials, including Foreign Minister Ishaq Dar and Chief of Defence Forces (CDF) Field Marshal Asim Munir.

 

Discussions during the meeting covered economic cooperation and regional developments with a focus on Pakistan’s financing needs amid rising external pressures linked to developments in the Middle East.

 

According to reports, Pakistan has sought further financial support from Saudi Arabia, including an increase in existing cash deposits and an extension in its oil financing facility, which is due to expire later this month.

 

Pakistan’s foreign exchange reserves remain under pressure due to higher import costs while officials have indicated that without fresh inflows, reserves may decline further in the coming weeks.

 

The government is also engaging with international partners ahead of upcoming financial meetings in Washington DC as it seeks to secure additional support.

 

In the absence of new inflows, officials said that foreign exchange reserves could fall to $11.5 billion, highlighting the need for external financing to manage near-term repayment obligations.

 

Meanwhile, PM Shehbaz Sharif is expected to visit Saudi Arabia within the next two days after receiving an invitation from Crown Prince Mohammed bin Salman. The premier will reportedly be accompanied by Field Marshal Munir and Dar among others.