Saudi, Qatar financial support package seen easing Pakistan external financing pressure

Pakistan is expected to receive around $5 billion in financial assistance from Saudi Arabia and Qatar, a development reported by Turkish state-run Anadolu Agency citing Pakistani sources, as the country faces heightened external financing pressure ahead of major debt repayments.

The expected inflows are seen as critical to stabilising foreign exchange reserves held by the State Bank of Pakistan (SBP), which stood at $16.40 billion for the week ended April 3, 2026, and to support external payment obligations due over the coming months.

The financing support comes as Pakistan prepares to clear a $3.5 billion repayment to the United Arab Emirates (UAE) by April 23, including a long-rolled-over $3 billion facility carrying around 6 percent interest, along with a separate $450 million overdue amount, according to official sources cited in earlier reporting.

That UAE facility had remained in place since 2018 through repeated rollovers, shifting from annual to monthly extensions earlier this year before Islamabad opted for full repayment. The settlement is expected to add immediate pressure on the country’s external account position.

Adding to financing needs, Pakistan also faces a $1.3 billion Eurobond maturity before the end of the fiscal year in June, bringing total near-term external obligations to approximately $4.8 billion.

In parallel, Pakistan has sought additional support from Saudi Arabia, including expansion of existing cash deposits and extension of an oil financing facility that is set to expire later this month.

Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan recently met Prime Minister Shehbaz Sharif in Islamabad, where discussions included strengthening financial cooperation and external financing arrangements.

The report said Riyadh has assured Islamabad of continued financial backing amid rising external pressures and geopolitical tensions in the region.

Pakistan is targeting foreign exchange reserves above $18 billion by June under a $7 billion International Monetary Fund (IMF) programme, which requires the rollover of bilateral deposits as part of its external stability framework.