Saudi Arabia and Qatar have assured Pakistan of $5 billion in financial assistance, a move that will help Islamabad ease pressure on its fragile foreign reserves while meeting external payment obligations by June, Middle East Monitor reported.

Sources revealed that this development comes at a critical juncture, as Pakistan is preparing to repay $3.5 billion in debt to the United Arab Emirates by the end of the month.

Riyadh has stepped forward with assurances of financial backing amid mounting external pressures and rising costs linked to ongoing tensions in the Middle East. The Saudi Finance Minister, Mohammed bin Abdullah Al-Jadaan, met with Pakistan’s Prime Minister Shehbaz Sharif in Islamabad on Friday night. 

The meeting was attended by senior Pakistani officials, including Foreign Minister Ishaq Dar and Chief of Army Staff General Asim Munir, and focused on economic cooperation and regional developments against the backdrop of the current rift between Saudi Arabia and the UAE.

Pakistan has requested additional financial assistance from Riyadh, including an expansion of existing cash deposits and an extension of its oil financing facility, which is due to expire later this month.

While no formal agreements were announced during the meeting, officials confirmed that discussions on financial support had already been initiated between the two countries’ finance ministries.

The country’s foreign exchange reserves remain under strain due to rising import costs, and officials have warned that without fresh inflows, reserves could decline further in the coming weeks. Islamabad is also engaging with international partners ahead of key financial meetings in Washington, seeking to shore up its economic position.

According to sources, Saudi Arabia and Qatar’s assurance of $5 billion in financial assistance will enable Pakistan to avert stress on its weak reserves while making external payments. This support is particularly significant as Pakistan prepares to settle the $3.5 billion debt owed to the UAE by the end of April, following Abu Dhabi’s request for immediate repayment.

At present, Pakistan’s foreign exchange reserves stand at approximately $16.4 billion, underscoring the urgency of securing external financial support to maintain stability in the face of mounting obligations.

Agencies