Saudi Arabia has announced a $1 billion oil financing facility for Pakistan for FY2025–26. It will also roll over $5 billion in existing deposits, the Ministry of Finance confirmed.
This new oil facility will help Pakistan cover energy import needs and ease pressure on foreign reserves. Meanwhile, the $5 billion Saudi deposits, $2 billion maturing in December and $3 billion in June 2026, will remain with the State Bank of Pakistan for another term.
These deposits carry a 4% annual interest rate. They provide crucial budgetary support and show Riyadh’s confidence in Pakistan’s economic recovery plan. During the first quarter of FY2025–26, Pakistan already imported oil worth Rs85 billion ($300 million) under this arrangement. On average, monthly supplies reached about $100 million.
Officials said the continuation of these facilities underscores Saudi Arabia’s consistent support for Pakistan’s economic stability and resilience.
Meanwhile, Prime Minister Shehbaz Sharif is in Riyadh on a three-day visit to attend the 9th Future Investment Initiative. He received a warm welcome from Saudi dignitaries. The visit follows last month’s Strategic Mutual Defence Agreement, under which both nations agreed that any attack on one would be treated as an attack on both.
This pact has opened a new era in Pakistan–Saudi relations. Cooperation now extends from defence to economic, environmental, and energy sectors. Moreover, to strengthen this partnership, the federal government has formed an 18-member high-level committee. The group will lead talks under the Pakistan–Saudi Arabia Economic Framework, focusing on investment, trade, and climate collaboration.
Officials added that Saudi Arabia’s renewed financial support and growing strategic ties reflect deep trust and a shared vision between the two allies. Together, both nations are shaping a path toward long-term stability and prosperity.
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