Pakistan has secured a $3 billion (€2.54 billion) deposit from Saudi Arabia aimed at bolstering its foreign exchange reserves ahead of a major debt payment to the United Arab Emirates, officials said. The Saudi Ministry of Finance confirmed the deposit, saying it was intended to support Pakistan’s balance of payments, Reuters reported.
The timing is significant: Islamabad faces a $3.5 billion repayment to the UAE this month, equivalent to roughly 18% of its reserves. Finance Minister Muhammad Aurangzeb also said an existing $5 billion Saudi deposit would be extended for an unspecified period, providing further cushion.
The announcement comes just before Prime Minister Shehbaz Sharif’s visits to Saudi Arabia, Qatar and Turkey. Reuters sources said Saudi Finance Minister Mohammed Al-Jadaan visited Pakistan on Friday as part of the deepening engagement between the two countries.
Riyadh and Islamabad have been strengthening economic and security ties for years. In 2018 Saudi Arabia offered a $6 billion package to Pakistan, and last year the two countries signed a mutual defense agreement that treats aggression against one as an attack on both.
Pakistan has also become more active in Middle East diplomacy, acting as a mediator between the United States and Iran while supporting Saudi defenses against Iranian missile and drone strikes. Last week, Islamabad deployed fighter jets and support aircraft to Saudi Arabia after Iranian attacks on critical energy infrastructure.
Separately, Pakistan is looking to expand defense-related exports, including fighter jets, as part of broader efforts to boost economic growth and foreign exchange earnings.