Saudi Arabia Steps In With $3 Billion Support For Pakistan Amid Looming UAE Debt

Last Updated:April 15, 2026, 12:35 IST

The extra funding for Pakistan comes on top of Riyadh extending the rollover arrangement for an additional $5 billion deposit for a longer period.

Saudi Arabia has pledged an additional $3 billion in financial assistance to Pakistan, helping it cover a significant funding shortfall linked to an upcoming debt repayment to the United Arab Emirates.

The extra funding for Pakistan comes on top of Riyadh extending the rollover arrangement for an additional $5 billion deposit for a longer period, Pakistan Finance Minister Muhammad Aurangzeb ​said.

The development highlights the deepening relationship between Riyadh and Islamabad. The partnership between the two nations was cemented last year after they signed a mutual defense pact, treating aggression against either as an attack on both.

“We ⁠can confirm that Saudi Arabia has agreed to a $3 billion deposit with Pakistan to support their balance ​of payments," a Saudi Ministry of Finance spokesperson told Reuters.

Pakistan is set to repay $3.5 billion to the United Arab Emirates this month, putting pressure on its foreign exchange reserves, which stood at around $16.4 billion as of March 27.

The repayment to UAE accounts for roughly 18% of these reserves. Under its $7 billion program with the International Monetary Fund, Pakistan aims to raise its foreign exchange reserves to over $18 billion by June.

“Senator Aurangzeb said this support ‌comes ⁠at a critical time for Pakistan’s external financing needs and would help reinforce foreign exchange reserves and strengthen the country’s external account," the finance ministry said in a statement.

The ministry further stated that Islamabad is committed to maintaining foreign exchange reserves “in line with its obligations to markets and under the IMF-supported programme".

Earlier on Monday, Pakistani Finance Minister Muhammad Aurangzeb said “all options are on the table," including Eurobonds, loans and commercial debt.

Saudi Arabia has repeatedly stepped in to support ​Pakistan during periods of economic stress. In 2018, Riyadh unveiled a $6 billion package ​that included a $3 ⁠billion deposit at Pakistan’s central bank and $3 billion in oil supplies on deferred payment.

Meanwhile, Pakistan is currently working as a key mediator between the US and Iran to end the war in the Middle East.

(With agency inputs)

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