Saudi Arabia to Deposit $3 Billion in Pakistan Reserves

Pakistan's Finance Minister Muhammad Aurangzeb announced on Tuesday in Washington that Saudi Arabia has agreed to provide $3 billion in additional financial deposits to bolster the country's foreign exchange reserves, just as Islamabad faces a looming $3.5 billion debt repayment to the United Arab Emirates by the end of April.

The assistance, expected to arrive next week, comes alongside Riyadh's commitment to extend an existing $5 billion deposit for a longer term, eliminating the need for annual rollovers. Aurangzeb, speaking to reporters on the sidelines of the International Monetary Fund and World Bank Spring Meetings, described the support as timely for addressing Pakistan's external financing needs. "We have held a detailed meeting with the Saudi finance minister today. He has clearly told me that $3 billion will be provided to Pakistan as additional deposits," Aurangzeb said.

Pakistan's liquid foreign exchange reserves stood at approximately $21.89 billion as of late last week, with the State Bank of Pakistan holding $16.4 billion and commercial banks accounting for the rest. The UAE repayment, which represents a significant portion of these holdings, follows the...