Pakistan Receives $1 Billion Saudi Support Amid External Financing Pressure

Pakistan Secures Fresh $1 Billion from Saudi Arabia to Support Reserves

Islamabad: Pakistan has received a fresh financial boost of $1 billion from Saudi Arabia, offering timely support to the country’s foreign exchange reserves at a moment of rising external pressure.

According to the State Bank of Pakistan (SBP), the funds were transferred by Saudi Arabia’s Ministry of Finance on April 20, 2026. This amount represents the second installment of a broader $3 billion deposit arrangement recently finalized between the two countries. The first tranche of $2 billion had already been credited earlier.

The inflow comes shortly after Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, where discussions focused on strengthening bilateral cooperation and addressing regional stability concerns.

In addition to the ongoing deposit arrangement, Saudi Arabia has also pledged another $3 billion in fresh support and extended its existing $5 billion financial facility for an additional three years, signaling continued economic backing for Pakistan.

Despite this support, Pakistan’s external financial situation remains delicate. The country is expected to repay a $3.5 billion loan to the United Arab Emirates (UAE) within the current month. This repayment could exert further pressure on already stretched reserves.

As per official data, Pakistan’s foreign exchange reserves stood at $16.4 billion by the end of March, covering nearly three months of imports. However, recent developments, including the inability to secure a rollover agreement with the UAE, have intensified concerns over short-term financing needs.

Economic experts believe that while Saudi assistance provides temporary relief, Pakistan’s external sector remains vulnerable due to high global oil prices and ongoing geopolitical tensions in the Middle East. These factors continue to impact the country’s import bill and overall economic outlook.

The government, however, maintains that its reform programme under the International Monetary Fund (IMF) remains on track, aimed at stabilizing the economy and improving long-term financial sustainability.