ISLAMABAD: Saudi Arabia has decided to provide Pakistan with a $1 billion oil facility in the current fiscal year 2025-26, while also rolling over $5 billion in deposits, officials said.
According to officials from Pakistan’s Ministry of Finance, Saudi Arabia will also roll over $5 billion in deposits, with $2 billion due in December and $3 billion in loans payable in June 2026.
During the first three months of the current fiscal year, an oil facility worth over PKR 85 billion (equivalent to $300 million) has already been provided.
Saudi Arabia is currently providing the oil facility on a monthly basis of $100 million, equivalent to PKR 28.37 billion per month.
The Finance Ministry stated that Saudi Arabia has extended $5 billion in time deposits at a 4% interest rate, which are rolled over annually.
In total, the Saudi deposits provided as loans amount to PKR 1,450 billion and are being extended as budget support to Pakistan.
Economic experts say this move will help Pakistan keep its head above water, ease pressure on foreign reserves, and stabilise the rupee amid ongoing financial challenges.
Pakistan and Saudi Arabia have historically maintained close ties, which have expanded in recent years to include enhanced strategic and economic cooperation.
During the Prime Minister’s visit to Riyadh on September 18, the two countries signed a landmark defence pact and, last year, agreed on 34 memorandums of understanding worth $2.8 billion across various sectors.
The relationship between the two nations is rooted in shared faith, mutual respect, and strategic partnership, with Riyadh serving as a key political and economic ally of Islamabad.
Saudi Arabia is also home to over 2.5 million Pakistani expatriates, who constitute the largest source of remittances for Pakistan’s $407 billion economy.
