Ryadh (Republic Pk) Saudi Arabia has rolled over a loan of more than $5 billion for Pakistan, which has significantly reduced the pressure on the country’s immediate external payments. This development was confirmed by the Federal Finance Minister.
According to sources, Saudi Arabia had provided this loan to Pakistan for payments to the United Arab Emirates (UAE), the period of which was initially set at three months. Now, with the rollover of this loan, Pakistan has received major financial support in a short period of time.
State Bank officials say that after the rollover of $5 billion, Pakistan’s foreign exchange position has further strengthened and the pressure on immediate external payments has reduced.
According to officials, Saudi Arabia’s total deposits in Pakistan are currently $8 billion.
Officials said that Pakistan had received $3 billion from Saudi Arabia in April this year, while Pakistan’s external financial requirements have reduced to $21.5 billion in the fiscal year 2026-27. In addition, interest payments on foreign loans have also decreased by about half a billion dollars.
According to the State Bank, Pakistan has also repaid foreign loans worth $2.2 billion during July, despite which the country’s economy has received an important boost from the loan rollover by Saudi Arabia.