Key Points
- Pakistan targets around $18 billion reserves, equivalent to 3.3 months of import cover
- Government reiterates commitment to meeting all external obligations on time
- International financial institutions acknowledge Pakistan’s reform trajectory and diplomacy
ISLAMABAD: Pakistan’s Finance Minister Senator Muhammad Aurangzeb announced that Saudi Arabia has committed an additional $3 billion in financial support and agreed to extend its existing $5 billion deposit for a longer duration.
Substantive funds from Saudi Arabia would provide a timely boost to the country’s external financing position and market confidence.
Speaking to the media in Washington, on the sidelines of the World Bank–IMF Spring Meetings 2026, the minister said the fresh inflows are expected within the coming week and would help reinforce Pakistan’s foreign exchange reserves and overall external account stability.
He noted that the extension of the existing Saudi deposit removes the earlier annual rollover constraint, offering greater predictability and support to Pakistan’s medium-term financing outlook.
Pakistan’s government remains committed to maintaining reserves in line with its obligations under the International Monetary Fund programme, the Finance Ministry said, targeting approximately $18 billion in reserves by the end of the fiscal year, equivalent to about 3.3 months of import cover.
Referring to recent developments, he highlighted that Pakistan had successfully repaid its $1.4 billion Eurobond. It was a routine transaction that underscored the country’s improving financial management and credibility in international markets, he noted.
The minister informed the media that the government of Pakistan was implementing an external financing plan in a disciplined manner, with a clear roadmap to meet all upcoming obligations and maturities on time.
During his engagements in the US, Aurangzeb, accompanied by the Governor of the State Bank of Pakistan and Pakistan’s ambassador to the United States, held detailed discussions with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan.
He expressed gratitude to the Saudi leadership, particularly Crown Prince Mohammed bin Salman, for continued support and cooperation, describing the assistance as critical for sustaining economic stability.
Aurangzeb also acknowledged the role of Pakistan’s leadership and economic team in securing the support package, highlighting coordinated efforts across institutions.
Referring to his country’s successful mediation between Iran and the US, the Finance Minister said Pakistan is currently receiving strong recognition from international partners.
The World Bank and global investors are acknowledging Pakistan, not only for its economic reforms but also for its diplomatic role in facilitating dialogue between parties with longstanding differences, he added.
Initiatives, including the Global Medium-Term Note programme and a planned Panda bond issuance, are shaping Pakistan’s external finance diversification and stabilisation strategy.
Finance Minister Aurangzeb reaffirmed the government’s commitment to macroeconomic stability, reform continuity, and sustained engagement with bilateral and multilateral partners. He was confident that recent developments would strengthen Pakistan’s economic momentum.
