Saudi Arabia has pledged $3 billion in new financial support to Pakistan, helping the country manage a funding gap linked to a $3.5 billion debt repayment to the United Arab Emirates.
In addition to this support, Saudi Arabia has also extended a $5 billion deposit rollover, which means the funds will remain with Pakistan for a longer period instead of being withdrawn.
This step is expected to strengthen Pakistan’s foreign exchange reserves at a time when the country is working to meet targets set under its program with the International Monetary Fund.
Officials said this financial assistance comes at a crucial time and will help improve Pakistan’s external financial position. The country’s reserves recently stood at around $16.4 billion, and the government aims to increase them to more than $18 billion by June.
The support from Saudi Arabia also reflects the strong and growing relationship between the two countries, especially in economic and defense areas. Such cooperation plays an important role in maintaining financial stability and building long-term partnerships.
The announcement has also had a positive impact on investor confidence. Following the news, Pakistan’s bond prices increased, showing improved market sentiment and trust in the country’s economic outlook.
