Saudi Arabia extends $8B support to Pakistan amid UAE debt repayment

Saudi Arabia on Thursday announced a $3 billion additional deposit to Pakistan’s central bank and extended an existing $5 billion deposit, in a move aimed at supporting the country’s economy.

According to the state news agency SPA, the financial support is intended to enhance Pakistan’s economic stability and strengthen its resilience in the face of global economic changes.

The extension of the $5 billion deposit and the new $3 billion injection come as part of ongoing cooperation between the two countries and reflect Saudi Arabia’s continued backing of Pakistan, the agency said.

Early Thursday, the State Bank of Pakistan said in a post on the US social media company X that it received $2 billion from Saudi Arabia’s Finance Ministry with a value date of April 15, 2026, providing support to its foreign exchange reserves as the country faces mounting external payment obligations.

The transfer came shortly after Prime Minister Shehbaz Sharif met Saudi Crown Prince Mohammed bin Salman in Jeddah.

The support comes as Pakistan is set to repay $3.5 billion in debt to the United Arab Emirates by the end of the month.

Anadolu reported last week that Saudi Arabia and Qatar are expected to provide a combined $5 billion in assistance to help Islamabad ease pressure on reserves and meet external payments by June.

Pakistan’s foreign exchange reserves remain under strain due to rising import costs, and officials have warned they could decline further without fresh inflows.

Pakistan’s total liquid foreign exchange reserves stand at about $21.89 billion, including $16.4 billion held by the central bank and approximately $5.49 billion held by commercial banks.

Finance Minister Muhammad Aurangzeb said Pakistan made $1.4 billion in external payments last week.