ISLAMABAD – Saudi Arabia has rolled $5 billion in loans to Pakistan for three years, providing significant relief from the country’s immediate external payment obligations.
Federal Finance Minister confirmed the development, while officials said the financing had originally been provided to help Pakistan meet payments to the United Arab Emirates under a short-term, three-month arrangement.
According to State Bank officials, the rollover—part of $5 billion in extended Saudi financing—has strengthened Pakistan’s foreign exchange position and reduced short-term financial pressure.
Authorities said Saudi Arabia’s total deposits in Pakistan now stand at $8 billion. Officials also noted that Pakistan secured $3 billion from Saudi Arabia in April, while the country’s external financing requirement for fiscal year 2026-27 has fallen to $21.5 billion.
Pakistan has also repaid $2.2 billion in external debt during July, further supporting economic stability.
Pakistan has repaid $3.5 billion to the United Arab Emirates (UAE), fulfilling a key part of its external debt obligations, according to the State Bank of Pakistan. The repayment followed the arrival of $3 billion in financial support from Saudi Arabia.
The UAE first extended a $2 billion deposit to Pakistan in 2018, with the arrangement being renewed annually. In 2023, Abu Dhabi provided an additional $1 billion to help Islamabad meet its external financing needs, while a separate $450 million facility has remained in place since the 1996–97 fiscal year.
The $3.5 billion repayment was due by the end of April under bilateral deposit agreements. The payment is part of Pakistan’s wider efforts to manage its external liabilities, reinforce foreign exchange reserves, and maintain economic stability with support from friendly countries and the International Monetary Fund (IMF).
