RIYADH (The Thursday Times) — Saudi Arabia said on Thursday that it would provide Pakistan with financial support worth $8 billion, extending an existing $5 billion deposit at the State Bank of Pakistan and adding a further $3 billion, in a move aimed at shoring up the country’s economic stability at a delicate moment for Islamabad.
The announcement, carried by the Saudi Press Agency, said the support had been approved under directives from King Salman and Crown Prince Mohammed bin Salman. Saudi officials described the package as part of a broader effort to reinforce Pakistan’s economy and help it withstand global economic pressures, while also underscoring what both sides have long framed as a close strategic and brotherly relationship.
For Pakistan, the timing is critical. Reuters reported that the new Saudi backing comes as the country works to protect its foreign exchange reserves and manage a large repayment obligation to the United Arab Emirates this month. Pakistan’s reserves stood at about $16.4 billion in late March, and officials have been trying to keep the country on track for reserve targets linked to its $7 billion International Monetary Fund programme.
The Saudi support appears designed not only to ease immediate financing pressure but also to steady confidence in Pakistan’s external position. Reuters reported that investors responded positively, with Pakistan’s international bonds rallying as the announcement signalled that Riyadh remained willing to play a central role in stabilising the country’s finances.
Saudi statements stressed the political meaning of the package as much as the financial one. Officials said the assistance was intended to strengthen Pakistan’s resilience in the face of changing global economic conditions and to deepen the bonds between the two countries, presenting the decision as both economic support and a reaffirmation of the relationship between Riyadh and Islamabad.
