ISLAMABAD – Saudi Arabia pledged to extend $3 billion financial support to Pakistan through a deposit, reinforcing its commitment to the country’s economic stability amid external financing pressures, the reports suggested on Tuesday.
The reports said that the assurance was conveyed during a recent short visit by the Saudi finance minister, who informed Pakistani authorities that Riyadh would cover any potential gap in foreign exchange reserves caused by the withdrawal of funds by another Gulf country.
The development followed the reports that a friendly Gulf state is set to withdraw over $3 billion from Pakistan’s reserves. In response, Saudi Arabia decided to place an equivalent amount with the State Bank of Pakistan to maintain reserve levels and avoid financial strain.
The officials described the move as a strong indication of confidence and longstanding relations between the two countries. They added that Saudi deposits in the central bank currently stand at $5 billion, which will rise further after the new arrangement.
Pakistan’s leadership, both civilian and military, has expressed appreciation for the support, terming it timely and significant.
Prime Minister Shehbaz Sharif is expected to visit Saudi Arabia in the coming days to thank the Saudi leadership for the assistance.
During the visit, he is also likely to discuss Pakistan’s diplomatic initiatives, including efforts to facilitate dialogue between the United States and Iran. Islamabad is working to help organise another round of talks before April 22, with the aim of strengthening the existing ceasefire and promoting long-term regional stability.
Pakistan sends military force, fighter jets to Saudi Arabia under Defence Pact
