Pakistan will receive $5 billion from Saudi Arabia and Qatar to support its fragile economy.
Islamabad: Cash-strapped Pakistan is set to receive USD 5 billion in financial support from Saudi Arabia and Qatar, providing a critical buffer for its fragile external position, according to a media report on Sunday.
The expected inflows come at a crucial juncture as Islamabad prepares to repay USD 3.5 billion to the United Arab Emirates (UAE) this month and faces pressure on its foreign exchange reserves, the Dawn newspaper said.
To avert pressure on Pakistan’s weak foreign reserves, Saudi Arabia and Qatar will provide USD 5 billion in financial assistance, the report said, quoting sources in the finance ministry.
The development coincides with Finance Minister Muhammad Aurangzeb’s visit to Washington to attend the IMF-World Bank Spring Meetings and advance Pakistan’s economic diplomacy.
Aurangzeb will participate in the meetings scheduled from April 13 to 18, where he is expected to hold engagements with senior officials of the International Monetary Fund and the World Bank.
Policymakers view these interactions as part of a broader strategic outreach, with indications that traditional factors such as strict programme conditionalities or reliance on third-party guarantors, including the UAE, may carry less weight in the current context.
The IMF has stipulated that Pakistan’s three key bilateral creditors — Saudi Arabia, China and the UAE — must maintain their cash deposits with the country until the completion of the ongoing three-year programme. It seems the UAE will be replaced by Qatar, the Dawn report said.
Ahead of his departure, Aurangzeb met Saudi finance minister Mohammed bin Abdullah Al-Jadaan in Islamabad, who also called on Prime Minister Shehbaz Sharif, reflecting continued support at a time when Pakistan has announced plans to clear its UAE debt.
Saudi Arabia remains a major source of concessional financing for Pakistan, having rolled over deposits amounting to USD 5 billion so far.
Pakistan has said it will repay USD 3.5 billion to the UAE by the end of April, a liability that had been rolled over since 2018.
