Saudi Arabia announces $8b support to Pakistan amid UAE debt repayment

On Thursday, Saudi Arabia deposited another three billion dollars into the State Bank of Pakistan (SBP) and renewed a five billion dollar deposit in its effort to prop up Pakistan's economy.

SPA reported that the additional funding was meant to bolster Pakistan’s economy by making it more stable and better equipped to withstand any global economic trends.

The renewal of the $5 billion deposit along with the depositing of the additional $3 billion comes amid ongoing cooperation between both states with regard to supporting Pakistan, according to SPA.

In addition to this, earlier on Thursday, the SBP had posted on X that it had received $2 billion from the Finance Ministry of Saudi Arabia with a value date of April 15, 2026.

The transfer follows Pakistani Prime Minister Shehbaz Sharif’s meeting with Saudi Crown Prince Mohammed bin Salman in Jeddah.

The aid arrives amid Pakistan’s repayment of $3.5b in debts to the United Arab Emirates by the end of the month.

According to Anadolu, Saudi Arabia and Qatar were expected to extend a total of $5b in support to help Pakistan manage its foreign currency reserves and make external payments until June.

Pakistan’s foreign exchange reserves are under pressure due to higher import costs, with officials saying that without new foreign currency inflows, the country’s reserves may shrink further.

Pakistan’s total liquid foreign exchange reserves are estimated to be $21.89b, comprising $16.4b with the State Bank of Pakistan and approximately $5.49b with commercial banks.

Pakistan Finance Minister Muhammad Aurangzeb announced that the country had made $1.4b in external payments last week.