Pakistan receives $2 billion from Saudi Arabia to support reserves

Saudi Arabia has provided $2 billion in support to Pakistan to help the country bridge a multi-billion-dollar financing gap linked to an upcoming debt repayment to the United Arab Emirates. The State Bank of Pakistan (SBP) confirmed the inflow, with funds credited on April 15, 2026.

Pakistan faces a $3.5 billion repayment to the UAE this month that has put a strain on its foreign ​exchange reserves, which stood at about $16.4 billion as of March 27. The repayment to the UAE amounts to roughly 18% of those holdings. 

Under Pakistan’s $7 billion IMF program, the country is targeting foreign exchange reserves of more than $18 billion by June.

The latest inflow comes as part of broader financial support from Saudi Arabia, which has committed an additional $3 billion in deposits. Pakistan’s Finance Minister Muhammad Aurangzeb confirmed the development on Wednesday while speaking to the media in Washington, D.C., on the sidelines of the World Bank–IMF Spring Meetings 2026.

He said the existing $5 billion Saudi deposits would no longer remain subject to annual rollover requirements and would instead be extended for a longer period.

Aurangzeb added that discussions on financial support took place during a meeting with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, attended by the SBP governor and Pakistan’s ambassador to the United States.

Saudi Arabia has repeatedly stepped in to support Pakistan during ​periods of economic stress. In 2018, Riyadh unveiled a $6 billion package that included a $3 ​billion deposit ⁠at Pakistan’s central bank and $3 billion in oil supplies on deferred payment.

Pakistan, meanwhile, has emerged as the key mediator between the U.S. and Iran to end the war in the Middle East while also shoring up Saudi Arabia’s defences after the ⁠Gulf kingdom ​came under hundreds of Iranian missile and drone attacks.

Last week, Pakistan deployed ​fighter jets and support aircraft to Saudi Arabia after Iranian strikes on key Saudi energy infrastructure.

Meanwhile, Pakistan is also considering requesting the International Monetary Fund (IMF) to increase the size of its existing $7 billion bailout programme, as it faces pressure on foreign exchange reserves, The Express Tribune reported on Thursday, citing official sources.

Officials said discussions have taken place at the Prime Minister’s Office and the Ministry of Finance on expanding the Extended Fund Facility, which is due to run until September next year. Pakistan has so far received $4 billion under the programme and expects approval of the next $1 billion tranche soon.

Government sources said Pakistan is exploring the option of securing an additional $2 billion to $2.5 billion under the existing IMF arrangement. 

Officials said the IMF is likely to consider the request in light of the economic impact of the Middle East conflict, which has affected energy procurement, logistics and broader macroeconomic indicators, including inflation, growth, exports and remittances.

Finance Minister Muhammad Aurangzeb raised the issue of additional financing and programme continuity with IMF leadership during meetings in Washington, where he also called for a review of surcharge policies on IMF lending.