Saudi Arabia pledges $3b additional support, extends $5b deposit: finance minister
Finance Minister Muhammad Aurangzeb along with the Governor, State Bank of Pakistan and Pakistan’s Ambassador to the United States, held a detailed meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. PHOTO: MINISTRY OF FINANCE ON X
The Kingdom of Saudi Arabia on Wednesday pledged $3 billion in deposits, with disbursement expected in the coming week, and the existing $5 billion Saudi deposit will no longer be subject to the previous annual rollover arrangement but will instead be extended for a longer period, the Ministry of Finance said.
According to a press release, Finance Minister Aurangzeb made the announcement while speaking to the media in Washington, DC, on the sidelines of the World Bank–IMF Spring Meetings 2026.
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Aurangzeb said this would help reinforce foreign exchange reserves and strengthen the country’s external account. He reiterated the government’s commitment to maintaining reserves in line with its obligations to markets and under the IMF-supported programme, including the objective of achieving $18 billion in reserves, equivalent to approximately 3.3 months of import cover, by the end of the fiscal year.
Saudi Arabia Announces USD 3 Billion Additional Support, Extends USD 5 Billion Deposit: Finance Minister
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with… pic.twitter.com/E8dXPg6g9YMinistry in a statement said that the finance minister noted that Pakistan had successfully repaid its $1.4 billion Eurobond last week, describing it as a “non-event,” and reaffirmed that the government remained fully committed to meeting all upcoming external obligations and maturities on time.
Aurangzeb said that he, along with the Governor, State Bank of Pakistan Jameel Ahmad and Pakistan’s Ambassador to the United States Rizwan Saeed Sheikh, held a detailed meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan.
"He had also met the Saudi finance minister in Islamabad the previous Friday, but said the government had deliberately refrained from commenting publicly in the absence of formal communication, despite media reports and speculation, as such matters required clarity and joint understanding before being shared," said the statement.
Aurangzeb said Pakistan was receiving appreciation from international financial institutions, the IMF, the World Bank, institutional investors, and counterparts he was meeting in Washington. He said the international community was particularly recognising Pakistan’s recent diplomatic and facilitative role in helping enable dialogue between parties that had not held face-to-face discussions for decades.
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He said this international appreciation, coupled with Saudi Arabia’s timely financial support, provided Pakistan with important momentum and confidence going forward, both for the economy and for the external account, including its commercial dimensions.
According to the ministry, Aurangzeb further noted that Pakistan was advancing its broader external financing agenda, including the recently announced Global Medium-Term Note programme and the planned inaugural Panda Bond issuance, as part of efforts to diversify funding sources and strengthen market access.
Aurangzeb expressed gratitude to the leadership of Saudi Arabia, especially Crown Prince Mohammed bin Salman, the Saudi finance minister, and the Saudi vice finance minister, for their unwavering support and close cooperation. He also thanked Prime Minister Shehbaz Sharif, Chief of Defence Forces and Chief of Army Staff, Field Marshal Asim Munir, Deputy Prime Minister Ishaq Dar, and Finance Secretary Imdad Ullah Bosal, among others.
Pakistan to pay back UAE debt
Pakistan has decided to return the $3.5 billion debt of the United Arab Emirates (UAE) this month, a senior cabinet minister said in a background briefing on Friday, ending speculations about the fate of the debt that Abu Dhabi had started rolling over only for a month.
The political leadership has decided to pay back the entire UAE debt, said one of the senior cabinet ministers while briefing the anchorpersons in his office.
Out of the $3.5b, a $450 million loan was taken in 1996-97 for one year, which Pakistan would be returning next week after 30 years, according to another government official.
While the cabinet minister said that the money was being returned, some senior government officials said that the discussions were taking place to convert a portion of the amount into investment.
It is believed that while the UAE was earlier reluctant to rollover the debt, the US-Israel-Iran war expedited the entire process, which has now culminated in the preparations to repay the debt.
The Express Tribune had reported in January that the UAE rolled over two loans of $1b each, which matured on January 16 and 22, only for a month. Pakistan had sought a two-year rollover and an interest rate of around 3%. But the UAE rolled it over then at the old terms of 6.5% interest rate.