Saudi Arabia to provide $3B to Pakistan amid UAE debt repayment

Pakistan’s Finance Minister Muhammad Aurangzeb confirmed late Tuesday that Saudi Arabia will provide $3 billion in financial assistance to Islamabad, helping ease pressure on the country’s weak foreign reserves as it faces debt repayment obligations to the United Arab Emirates. Speaking to reporters in Washington, where he is holding staff-level talks with the International Monetary Fund (IMF), Aurangzeb said Riyadh will deliver the promised amount next week as “additional deposits.”

Debt repayment and external pressures

The development comes as Pakistan is set to repay a $3.5 billion debt to the UAE by the end of the month. Anadolu previously reported that Saudi Arabia and Qatar will provide Pakistan with $5 billion in financial assistance, enabling Islamabad to manage external payments due by June. Riyadh has assured Islamabad of its support amid mounting external pressures and rising costs linked to ongoing Middle East tensions. Last week, Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan visited Islamabad and met with Prime Minister Shehbaz Sharif to discuss the assistance.

Reserves and external payments

Pakistan’s liquid foreign exchange reserves total approximately $21.89 billion, with the State Bank of Pakistan holding $16.4 billion and commercial banks holding $5.49 billion. Aurangzeb noted that Pakistan made $1.4 billion in external payments last week. Officials warn that without fresh inflows, reserves could decline further. The government is also engaging with international partners ahead of key financial meetings in Washington.