Saudi Arabia has once again come to Pakistan’s aid with major financial backing, approving a $1 billion oil facility for FY2025–26 and rolling over $5 billion in deposits already held by the State Bank of Pakistan.
Finance Ministry officials said the $1 billion (≈Rs290 billion) oil credit will help ease external pressure and ensure consistent energy supplies amid rising global oil prices.
Additionally, Riyadh will extend $5 billion in time deposits — $2 billion maturing in December 2025 and $3 billion in June 2026 — provided at a 4% annual interest rate, reflecting Saudi confidence in Pakistan’s financial management.
In the first quarter of FY2025–26, Pakistan has already utilized $300 million (≈Rs85 billion) under this facility, with monthly financing of around $100 million (≈Rs28.37 billion).
The total Saudi deposits now stand at Rs1.45 trillion, offering crucial stability to Pakistan’s reserves and boosting lender confidence.
Analysts view this renewed assistance as a strong sign of Saudi Arabia’s continued economic support at a time when Pakistan is implementing IMF-backed reforms to restore fiscal balance and investor trust.
In recent developments, Pakistan and Saudi Arabia Sign Landmark Strategic Defense Agreement
