ISLAMABAD: Saudi Arabia and Qatar are set to provide Pakistan with $5 billion in financial assistance, offering crucial support to stabilize the country’s economy and maintain foreign exchange reserves. According to Anadolu Agency, the funding is expected to help Islamabad manage external payment obligations and avoid pressure on its reserves in the coming months.
The assistance comes at a critical time as Pakistan prepares to repay $3.5 billion to the United Arab Emirates by the end of April. Analysts warn that this repayment could strain the country’s foreign exchange reserves, which stood at $16.40 billion, according to the State Bank of Pakistan.
Reports suggest that Riyadh has assured continued financial backing amid rising economic challenges and increased costs linked to ongoing regional tensions. The support package may include expanding existing deposits and extending oil financing facilities, which are vital for Pakistan’s energy imports.
The development follows a key meeting between Shehbaz Sharif and Mohammed Al-Jadaan in Islamabad, where economic cooperation and financial support were discussed. Pakistan has reportedly requested further assistance to strengthen its financial position and meet upcoming obligations.
The financial relief is also crucial for Pakistan’s commitments under the International Monetary Fund programme, which targets foreign exchange reserves above $18 billion by June. The programme requires bilateral loans and deposits to be rolled over to ensure stability.
In addition to the UAE repayment, Pakistan faces further financial pressure with a $1.3 billion Eurobond maturing before the end of the current fiscal year. Overall, the country’s external payment obligations are nearing $4.8 billion, intensifying the need for immediate financial support.
Economists believe that timely assistance from Saudi Arabia and Qatar could help Pakistan avoid a balance of payments crisis and maintain investor confidence. However, long-term economic stability will depend on structural reforms and sustained fiscal discipline.
With global economic uncertainty and regional tensions persisting, Pakistan’s ability to secure external financing remains critical for stabilizing its economy and ensuring financial resilience.
