Saudi Arabia has extended crucial financial support to Pakistan by pledging an additional $3 billion and prolonging the tenure of an existing $5 billion loan, Pakistan’s Finance Minister Muhammad Aurangzeb announced on Tuesday. The move aims to ease mounting external debt pressures and bolster the country’s foreign exchange reserves.
Speaking during the World Bank-IMF Spring Meetings in Washington, Aurangzeb said the funds would help Pakistan reach its $18 billion reserve target by the end of the fiscal year. The country’s reserves stood at about $16.4 billion in late March.
Facing significant repayment obligations, Pakistan recently cleared a $1.4 billion Eurobond and is due to repay $3.5 billion to the UAE. Officials said Saudi support provides vital economic confidence as Islamabad navigates ongoing financial strain and implements disciplined fiscal measures.
