Washington: Saudi Arabia has committed an additional $3 billion in deposits to Pakistan, according to Finance Minister Muhammad Aurangzeb. The funds are expected to be disbursed in the coming week, providing a timely boost to Pakistan’s foreign exchange reserves and external account.

According to Radio Pakistan, the existing $5 billion Saudi deposit will no longer be subject to the previous annual rollover arrangement and will instead be extended for a longer period. This move comes as Pakistan seeks to bolster its reserves and meet its external financing needs, with an aim to achieve around $18 billion in reserves by the end of the fiscal year under an IMF-supported program.

Finance Minister Aurangzeb noted the successful repayment of a $1.4 billion Eurobond last week and emphasized the government’s commitment to meeting all upcoming external obligations. He expressed gratitude to Saudi Arabia’s leadership for their continued support and acknowledged the efforts of Pakistan’s political and economic leadership in securing the financial package.

The minister also highlighted the international community’s recognition of Pakistan’s diplomatic efforts and facilitative role in enabling dialogue between previously estranged parties. He stated that the international appreciation, along with Saudi Arabia’s financial support, provided Pakistan with crucial momentum and confidence for its economic and external account management.