Saudi Arabia has assured Pakistan of continued financial support as Islamabad navigates mounting external financing needs and economic challenges linked to regional tensions.
The assurance came during a meeting between Prime Minister Shehbaz Sharif and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan in Islamabad on Friday, according to officials familiar with the discussions.
The Saudi minister reaffirmed Riyadh’s commitment to supporting Pakistan’s economic stability and expressed confidence in Islamabad’s role in facilitating diplomatic engagement amid tensions involving the United States and Iran.
While no formal agreements were announced, Pakistani officials said discussions covered potential financial assistance, including fresh loans and the extension of an oil financing facility. Pakistan has sought at least $5 billion in additional loans and an extension of an annual $1.2 billion oil credit facility, which is set to expire this month.
The South Asian nation is currently managing significant external obligations, including nearly $4.8 billion in repayments due this month, part of broader efforts to stabilize its external account amid rising import costs and global economic uncertainty.
Officials said Pakistan is also exploring options to increase an existing Saudi deposit facility, currently around $5 billion, to help maintain foreign exchange reserves. Without fresh inflows, reserves could face downward pressure in the coming months.
The meeting was attended by senior Pakistani officials, including Finance Minister Muhammad Aurangzeb, Deputy Prime Minister Ishaq Dar, and Chief of Army Staff Syed Asim Munir, reflecting the strategic importance of the engagement.
Sharif conveyed appreciation for Saudi Arabia’s longstanding economic support, which has played a critical role in stabilizing Pakistan’s economy during periods of financial stress. He also reaffirmed Pakistan’s commitment to strengthening cooperation with the kingdom in trade, investment and economic development.
The Saudi minister reiterated the kingdom’s intention to deepen bilateral ties, in line with the vision of Mohammed bin Salman, and to continue supporting Pakistan through evolving economic and geopolitical challenges.
Analysts said Saudi backing remains crucial for Pakistan’s financial stability, particularly as the country engages with international lenders and seeks to sustain its reform programme while managing external vulnerabilities.