Pakistan’s foreign exchange reserves remain under pressure due to rising import costs
ISLAMABAD:
Saudi Arabia and Qatar will provide Pakistan $5 billion in financial assistance, enabling Islamabad to avert stress on the country’s weak foreign reserves while making external payments by June, Pakistani official sources told Anadolu on Saturday.
The development comes as Islamabad is set to repay a $3.5 billion debt to the UAE by the end of the month. Riyadh has assured Islamabad of its financial support amid mounting external pressures and rising costs linked to the ongoing tensions in the Middle East.
Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan met with Prime Minister Shehbaz Sharif on Friday night in Islamabad.
The meeting, attended by senior Pakistani officials, including Foreign Minister Ishaq Dar and Chief of Army Staff General Syed Asim Munir, focused on economic cooperation and regional developments.
Pakistan has requested additional financial assistance, including an expansion of existing cash deposits and an extension of its oil financing facility, which is set to expire later this month.
While no formal agreements were announced during the meeting, officials said discussions on financial support had been initiated earlier between the two countries’ finance ministries.
Pakistan’s foreign exchange reserves remain under pressure due to rising import costs, and officials warn that without fresh inflows, reserves could decline further in the coming weeks. The government is also engaging with international partners ahead of key financial meetings in Washington.
Sources told Anadolu that Saudi Arabia and Qatar assured Pakistan of $5 billion in financial assistance, enabling Islamabad to avert stress on the country’s weak foreign reserves while making external payments.
Pakistan is repaying $4.8 billion in debt this month, including the $3.5 billion debt owed to the UAE. In the absence of any fresh loans, the foreign exchange reserves could fall to $11.5 billion.
