Saudi Finance Chief’s Islamabad visit highlights economic support amid Gulf realignments

Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan visited Islamabad on Saturday in what a source familiar with the matter described to AFP as a signal of “economic support” for Pakistan, coming at a time of shifting regional alliances and mounting external financing pressures.

The visit comes shortly after Pakistan announced it would return more than $3 billion in loans to the United Arab Emirates, funds that had been repeatedly rolled over since 2018, underscoring evolving financial dynamics within the Gulf.

A source familiar with the matter said the Saudi minister’s presence was intended as reassurance of economic backing for Pakistan, which remains dependent on IMF assistance and bilateral support from Gulf partners to manage its external debt obligations.

Pakistan’s debt servicing burden continues to consume a significant portion of its annual revenues, reinforcing reliance on external financing arrangements and friendly-country deposits to maintain macroeconomic stability.

The diplomatic engagement also coincided with broader regional activity, including US–Iran talks being held in Islamabad aimed at exploring options to end the ongoing Middle East conflict, although the Saudi finance minister is not part of those discussions.

Separately, Pakistan has been working alongside Saudi Arabia, Egypt, and Türkiye in diplomatic efforts to seek a pathway toward de-escalation in the US-Israeli conflict involving Iran, which has intensified regional tensions.

The UAE, which has reportedly faced more Iranian attacks than other countries, has adopted a more cautious position, warning against partial solutions that do not fully address broader security risks and maritime freedom concerns.

The UAE and Saudi Arabia, once closely aligned, have experienced growing differences in recent years amid competing interests in Yemen, Sudan, and the Horn of Africa, reflecting broader geopolitical fragmentation in the Gulf.

While Abu Dhabi has not officially commented on mediation efforts, some Emirati commentators and analysts have criticised the involvement of Egypt and Pakistan in ongoing diplomatic initiatives through social media platforms.