A Major Boost to Pakistan’s Economic Stability
In a significant show of support, Saudi Arabia has extended a $1 billion oil financing facility and renewed $5 billion in time deposits for Pakistan to help stabilize its economy during the fiscal year 2025–26. According to the Ministry of Finance, this move highlights the Kingdom’s continued trust and commitment to Pakistan’s long-term economic well-being.
The oil facility will enable Pakistan to import petroleum products worth around $100 million per month, equivalent to Rs28.37 billion in local currency. So far, Pakistan has already benefited from over Rs85 billion worth of oil supplies under this arrangement, helping the government manage its growing energy demand and ease external financing pressures.
Strengthening Bilateral Economic Partnership
The $5 billion deposit renewal, which carries a 4% annual interest rate, aims to strengthen Pakistan’s foreign exchange reserves and stabilize its external account. These deposits reflect the deep-rooted financial cooperation between Islamabad and Riyadh, built on decades of mutual trust and shared interests.
During his recent visit to Riyadh, Prime Minister Shehbaz Sharif met with Crown Prince Mohammed bin Salman, where both leaders reaffirmed their commitment to expanding bilateral relations. The meeting also focused on forging a long-term economic partnership, with special emphasis on infrastructure investment and collaboration in China-Pakistan Economic Corridor (CPEC) projects.
Focus on Infrastructure and Private Sector Growth
Saudi Arabia has agreed to invest in major infrastructure projects, including dam construction, power transmission networks, and industrial development in Pakistan. To further enhance economic cooperation, both countries decided to establish a joint business council, aimed at promoting private sector partnerships and trade opportunities.
The high-level meeting was attended by top officials, including Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of Army Staff Field Marshal Syed Asim Munir, and senior Saudi ministers.
A Renewed Chapter in Pakistan-Saudi Relations
Following the meeting, Prime Minister Shehbaz Sharif expressed his gratitude to the Saudi leadership on social media, praising the Crown Prince’s unwavering support for Pakistan’s development goals. He highlighted that the discussions would pave the way for deeper cooperation in trade, investment, and economic growth.
The Prime Minister’s visit coincided with the 9th Future Investment Initiative (FII) Conference, where he represented Pakistan on the global stage, engaging with world leaders and investors to promote economic opportunities in the region.
