Saudi Arabia has committed an additional $3 billion in deposits for Pakistan, with the funds expected to be released within the coming week. At the same time, the Kingdom has agreed to extend its existing $5 billion deposit for a longer duration, Finance Minister Muhammad Aurangzeb announced in Washington, D.C..
Speaking to the media on the sidelines of the World Bank IMF Spring Meetings 2026, the finance minister said the additional financial support comes at a crucial time for Pakistan’s external financing requirements. He noted that the inflow will help strengthen the country’s foreign exchange reserves and improve its external account position.
Aurangzeb further explained that the existing $5 billion Saudi deposit will no longer operate under the previous annual rollover arrangement. Instead, it will now be extended over a longer term, providing greater stability to Pakistan’s reserves.
Reaffirming the government’s economic targets, he said Pakistan aims to build foreign exchange reserves to around $18 billion by the end of the fiscal year, equivalent to approximately 3.3 months of import cover.
The minister also highlighted that Pakistan successfully repaid its $1.4 billion Eurobond last week, describing the development as a “non-event” and emphasizing the country’s commitment to meeting all upcoming external debt obligations on time.
During his visit to Washington, Aurangzeb held detailed discussions with Mohammed bin Abdullah Al-Jadaan alongside officials including the Governor of the State Bank of Pakistan and Pakistan’s ambassador to the United States. He noted that a prior meeting with the Saudi finance minister had also taken place in Islamabad, but the government chose to wait for formal confirmation before making any public announcement.
Expressing gratitude, Aurangzeb thanked Saudi leadership, particularly Mohammed bin Salman, for their continued support. He also acknowledged the efforts of Pakistan’s leadership, including the prime minister, deputy prime minister, military leadership, and finance officials, in securing the financial package.
Looking ahead, the minister said Pakistan is actively pursuing broader external financing strategies, including the Global Medium Term Note programme and the planned issuance of its first Panda Bond, aimed at diversifying funding sources and improving access to international markets.
He concluded by reaffirming the government’s commitment to maintaining macroeconomic stability, ensuring timely debt repayments, and continuing close engagement with bilateral and multilateral partners.
