Pakistan has asked Saudi Arabia for stronger financial support as part of broader economic cooperation between the two countries. Pakistani officials have reportedly submitted several proposals aimed at stabilizing the country’s economy and improving energy security.
One of the main requests is to convert Saudi Arabia’s current $5 billion financial deposit held by State Bank of Pakistan into a 10-year facility. This step would give Pakistan more financial stability by keeping the funds available for a longer period rather than renewing them frequently.
Pakistan has also asked Saudi Arabia to expand its deferred oil payment facility. At present, Pakistan can purchase around $1.2 billion worth of oil per year on deferred payments from Saudi Arabia. The government wants this limit increased to $5 billion, which would help reduce pressure on Pakistan’s foreign exchange reserves.
Another proposal includes securitizing around $10 billion in funds sent by overseas Pakistanis. This idea would allow the government to raise additional financing using remittance flows as a financial asset.
Officials say global geopolitical tensions, especially conflicts involving Iran, the United States, and Israel, have increased economic pressure on many countries, including Pakistan.
At the same time, Pakistan is continuing discussions with the International Monetary Fund to complete the third review of its $7 billion Extended Fund Facility program. Negotiations with Saudi Arabia are also ongoing for a wider long-term economic cooperation package.
