Saudi Arabia has stepped in to support Pakistan’s strained economy, pledging a fresh $3 billion financial assistance package at a time when Islamabad faces mounting pressure to repay a $3.5 billion loan to the United Arab Emirates.
Pakistan’s Finance Minister Muhammad Aurangzeb, currently attending the World Bank and IMF Spring Meetings in Washington, confirmed that the pledged funds are expected to be deposited into Pakistan’s treasury within a week. The development comes as Prime Minister Shehbaz Sharif departs for an important official visit to Saudi Arabia,
underscoring the urgency of Islamabad’s diplomatic and financial engagements in the Gulf region. Pakistan is currently under pressure to repay a $3.5 billion loan extended in 2019 by the Abu Dhabi Fund for Development, originally aimed at easing the country’s balance of payments crisis. Despite multiple extensions, the UAE has reportedly intensified demands for repayment, pushing Islamabad into a difficult fiscal position. Analysts suggest that recent diplomatic strains between Pakistan and the UAE, along with Abu Dhabi’s growing security cooperation with India, may have contributed to the tightening of repayment terms. In this context, Saudi Arabia’s financial support is seen as a critical buffer for Pakistan’s fragile economy, potentially providing short-term relief and helping stabilize foreign exchange reserves in line with IMF requirements. Source: RT