Saudi Arabia's Financial Lifeline: A Boon for Pakistan's Reserves

Pakistan's foreign reserves received a substantial boost after Saudi Arabia pledged an additional USD 3 billion alongside an extension of an existing USD 5 billion deposit. Announced during the World Bank–IMF Spring Meetings 2026, this aid comes as Pakistan navigates critical external financing needs amid existing debts and repayment obligations.

Pakistan's foreign reserves have been significantly bolstered by Saudi Arabia's pledge of an additional USD 3 billion in deposits, coupled with an extension of an existing USD 5 billion facility.

The announcement was made by Pakistan's Finance Minister Muhammad Aurangzeb at the World Bank–IMF Spring Meetings 2026. He noted that the USD 5 billion Saudi deposit's term would be extended beyond the previous annual rollover arrangement.

This financial support arrives at a crucial moment as Pakistan is set to repay USD 3.5 billion to the UAE, potentially straining its foreign reserves. The aid aligns with IMF requirements that Saudi Arabia, China, and the UAE maintain their deposits with Pakistan until the ongoing three-year programme concludes.

(With inputs from agencies.)