ISLAMABAD – Saudi Arabia on Friday assured Pakistan of providing full financial support to deal with the issues stemming from the Middle East conflict, extending its helping hand at a time when Islamabad is making nearly $5 billion debt repayments and trying to keep the external account stable amid rising import costs.
The assurances came hours after Prime Minister Shehbaz Sharif also managed to get relief from local oil refineries that voluntarily surrendered a share of their windfall gains, which the premier subsequently passed on to consumers. The prime minister met with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and discussed a range of issues that Pakistan is currently dealing with.
Saudi Trust in Pakistan’s Mediation
Government officials said that the visiting finance minister assured his country’s full financial support to Pakistan and reiterated the kingdom’s trust in Pakistan’s role in mediating talks between the US and Iran. Although no specific financial proposals were discussed in the PM-Saudi finance minister delegation-level meeting, Finance Minister Muhammad Aurangzeb had taken up the proposals with his counterpart two days ago.
Financial Requests
Pakistan had earlier requested the kingdom to provide at least $5 billion loan and another $1.2 billion per annum in oil financing facility, said the officials. The Saudi oil facility is expiring in April, and Pakistan has requested the kingdom to extend it for another five years. Pakistan is also currently availing a $5 billion Saudi cash deposit loan but is looking to at least double the amount for maintaining reserves at their current levels.
Debt Repayment Pressure
Pakistan is repaying $4.8 billion debt this month, including the $3.5 billion debt owed to the United Arab Emirates. In the absence of any fresh loans, the foreign exchange reserves could fall to $11.5 billion. Originally, the UAE had assured the International Monetary Fund to maintain its financial exposure to Pakistan till the expiry of the bailout package in September 2027.
Aurangzeb Delays Washington Visit
The prime minister had asked Finance Minister Muhammad Aurangzeb to delay his visit to Washington for two days due to the Saudi finance minister’s visit. Aurangzeb was scheduled to travel to Washington on Wednesday to attend the IMF-World Bank spring meetings. Before his travel, the finance minister held a telephonic conversation with his Saudi counterpart to seek the kingdom’s financial support.
High-Level Meeting
An official handout by the Prime Minister’s Office stated that Mohammed bin Abdullah Al-Jadaan visited Islamabad for one day and called on Prime Minister Shehbaz Sharif. Deputy Prime Minister and Foreign Minister Ishaq Dar and Chief of Defence Forces Field Marshal Syed Asim Munir also attended the meeting along with Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik.
The prime minister conveyed his regards to the Custodian of the Two Holy Mosques, His Majesty King Salman bin Abdulaziz Al Saud, and His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. He fondly recalled his recent cordial telephone conversation with the Crown Prince.
Deep-Rooted Bonds
The prime minister expressed appreciation for the Crown Prince’s deep affection towards Pakistan as well as for the Kingdom’s longstanding economic and financial support to Pakistan over the years, which had played a vital role in Pakistan’s economic stability. He reiterated that the people and Government of Pakistan had always stood shoulder to shoulder with their Saudi brothers and sisters, and that this was an abiding bond between both countries that had grown stronger under the patronage of the Crown Prince.
The prime minister emphasised Pakistan’s strong commitment to expanding its cooperation with the kingdom in all spheres, particularly in trade, investment, and economic development. The Saudi finance minister reaffirmed the resolve of the Kingdom of Saudi Arabia to further strengthen the longstanding deep-rooted fraternal bonds between Pakistan and Saudi Arabia, as envisioned by Crown Prince Mohammed bin Salman.
Analysis: A Timely Lifeline
Saudi Arabia’s assurance of financial support comes at a critical time for Pakistan. With $4.8 billion in debt repayments due this month — including $3.5 billion to the UAE — and the ongoing economic fallout from the Middle East conflict, the kingdom’s backing provides a measure of stability.
The requested $5 billion loan and $1.2 billion annual oil facility would significantly boost Pakistan’s foreign exchange reserves, which could otherwise fall to $11.5 billion. The extension of the oil facility for another five years would provide long-term energy security.
The Saudi finance minister’s presence in Islamabad, and his participation in a high-level meeting including the prime minister, foreign minister, finance minister, and army chief, underscores the importance the kingdom places on its relationship with Pakistan.
For Pakistan, the Saudi assurance is both a financial lifeline and a diplomatic endorsement. As Islamabad hosts high-stakes talks between the US and Iran, having the backing of a key regional power strengthens its position as a mediator.
