Pakistan’s finance minister confirmed late on Tuesday that Saudi Arabia has agreed to provide $3 billion in financial assistance to Islamabad to avert stress on its weak foreign reserves amid debt repayment obligations to the United Arab Emirates.
Muhammad Aurangzeb, who is in Washington to hold staff level talks with the International Monetary Fund (IMF), told reporters that Riyadh will provide the promised amount next week, Pakistani broadcaster Geo News reported on Wednesday.
“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 was quoted as saying.
The development comes as Pakistan is set to repay a $3.5 billion debt to the UAE by the end of the month.
Anadolu last week reported that 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.
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Riyadh has assured Islamabad of its financial support amid mounting external pressures and rising costs linked to ongoing tensions in the Middle East.
Last week, Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan visited Islamabad and met with Pakistani Prime Minister Shehbaz Sharif to discuss the financial assistance.