Saudi Arabia has announced an additional $3 billion financial support package for Pakistan to help the country manage its external financing needs and strengthen its economy.

The new funding comes as Pakistan faces pressure to repay around $3.5 billion to the United Arab Emirates this month. This repayment accounts for nearly 18% of Pakistan’s foreign exchange reserves, which stood at approximately $16.4 billion as of March 27.

Along with the fresh $3 billion deposit, Saudi Arabia has also agreed to extend the tenure of an existing $5 billion deposit held with Pakistan’s central bank. This move will provide further relief to Pakistan’s financial position.

Pakistan’s Finance Minister Muhammad Aurangzeb stated that the support comes at a crucial time and will help stabilize the country’s external accounts and boost foreign reserves. He also reaffirmed Pakistan’s commitment to meeting its financial obligations under the International Monetary Fund (IMF) programme.

Under its $7 billion agreement with the International Monetary Fund, Pakistan aims to increase its foreign exchange reserves to over $18 billion by June.

The financial assistance highlights the strong and growing ties between Saudi Arabia and Pakistan. In recent years, Saudi Arabia has played a key role in supporting Pakistan during economic challenges.

Earlier, Pakistan had indicated that it is exploring multiple financing options, including Eurobonds, loans, and commercial borrowing, to meet its funding requirements.

Saudi Arabia’s latest move is expected to provide immediate relief and help Pakistan maintain economic stability during a critical period.