Saudi Arabia has rolled over its $3 billion financing facility to Pakistan for a longer period, Finance Minister Muhammad Aurangzeb said on Wednesday, providing relief to Islamabad as it faces external debt repayment pressures.&nbsp;The financing was originally provided in April to help Pakistan repay $3.5 billion owed to the United Arab Emirates (UAE). It matured on October 31 under its three-month term.&nbsp;"It has been extended and for a reasonable period. You don't need to worry as to for how long given the kind of strategic relationship we have," Aurangzeb told reporters in Islamabad, Dawn reported.&nbsp;The rollover comes as prospects of a proposed $10 billion US backstop facility appear to have weakened. Riyadh had earlier extended a separate $5 billion financing facility to Pakistan until 2028.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/chandigarh-couple-at-centre-of-fresh-us-sanctions-over-helping-iran-evade-oil-sanctions-1793864752969">Chandigarh couple at centre of fresh US sanctions over helping Iran evade oil sanctions</a><h3>Pakistan looks to reduce external debt</h3>Aurangzeb also told the Senate Standing Committee on Finance that the government was targeting a $4 billion reduction in external debt during the current fiscal year, followed by another $3.5 billion next year. This compares with a $4.5 billion reduction in the previous fiscal year.&nbsp;He said Pakistan was looking to replace expensive short-term borrowing with longer-term financing through bonds and private placements to reduce refinancing risks.&nbsp;The minister said the country's external debt had been rising by $5 billion to $6 billion annually, increasing from $45 billion in 2014-15 to around $100 billion. However, the annual increase had slowed to about $1 billion over the past two years.&nbsp;Pakistan's liquid foreign exchange reserves stand at approximately $26.86 billion. Of this, the State Bank of Pakistan holds $21.47 billion, while commercial banks account for around $5.41 billion.&nbsp;The rollover follows Pakistan's repayment of $3.5 billion to the UAE in April after Abu Dhabi sought immediate repayment. The move had put pressure on Pakistan's foreign exchange reserves, prompting Islamabad to seek financial support from Riyadh.

Saudi Arabia has rolled over its $3 billion financing to Pakistan, offering relief to Islamabad as prospects of a proposed $10 billion US backstop facility appear to have weakened.

Saudi Arabia has rolled over its $3 billion financing facility to Pakistan for a longer period, Finance Minister Muhammad Aurangzeb said on Wednesday, providing relief to Islamabad as it faces external debt repayment pressures. The financing was originally provided in April to help Pakistan repay $3.5 billion owed to the United Arab Emirates (UAE). It matured on October 31 under its three-month term. "It has been extended and for a reasonable period. You don't need to worry as to for how long given the kind of strategic relationship we have," Aurangzeb told reporters in Islamabad, Dawn reported. The rollover comes as prospects of a proposed $10 billion US backstop facility appear to have weakened. Riyadh had earlier extended a separate $5 billion financing facility to Pakistan until 2028. Also Read: Chandigarh couple at centre of fresh US sanctions over helping Iran evade oil sanctions Pakistan looks to reduce external debt Aurangzeb also told the Senate Standing Committee on Finance that the government was targeting a $4 billion reduction in external debt during the current fiscal year, followed by another $3.5 billion next year. This compares with a $4.5 billion reduction in the previous fiscal year. He said Pakistan was looking to replace expensive short-term borrowing with longer-term financing through bonds and private placements to reduce refinancing risks. The minister said the country's external debt had been rising by $5 billion to $6 billion annually, increasing from $45 billion in 2014-15 to around $100 billion. However, the annual increase had slowed to about $1 billion over the past two years. Pakistan's liquid foreign exchange reserves stand at approximately $26.86 billion. Of this, the State Bank of Pakistan holds $21.47 billion, while commercial banks account for around $5.41 billion. The rollover follows Pakistan's repayment of $3.5 billion to the UAE in April after Abu Dhabi sought immediate repayment. The move had put pressure on Pakistan's foreign exchange reserves, prompting Islamabad to seek financial support from Riyadh.

Saudi Arabia has rolled over its $3 billion financing to Pakistan, offering relief to Islamabad as prospects of a proposed $10 billion US backstop facility appear to have weakened.

Saudi Arabia rolls over $3 billion financing to Pakistan as $10 billion US backstop fades

Pakistan Foreign Ministry on Wednesday (Apr 15) announced that Saudi Arabia has agreed to $3 billion in fresh deposits, with disbursement expected in the coming week. The nation has also agreed to restructure an existing $5 billion facility on more favourable terms, announced Pakistan's Finance Minister Muhammad Aurangzeb. The announcement came on the sidelines of the IMF-World Bank Spring Meetings in Washington, following talks between Aurangzeb and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. The two had met previously in Islamabad last Friday, though Pakistani authorities deliberately held back from making any public statement until both sides had reached a formal agreement. This comes as Islamabad navigates a demanding external repayment schedule.Also read | <a href="https://www.wionews.com/world/-be-careful-pope-has-a-doctorate-in-theology-but-jd-vance-just-told-him-he-s-wrong-about-god-1776229084645">'Be careful...': Pope has a doctorate in theology, but JD Vance just told him he’s wrong about God</a><h2>Saudi commits to $3 billion in additional deposits to Pakistan</h2>"Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with disbursement expected in the coming week," announced Pakistan's Ministry of Finance on X. &nbsp;"The existing USD 5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period," added the post.The more consequential of the two developments may be the restructuring of the existing $5 billion deposit. Previously, that facility was subject to annual rollovers, a cycle that created recurring uncertainty for Pakistan's foreign exchange position and was entangled with IMF conditionalities. Under the new arrangement, the deposit will be extended for a longer, unspecified term, removing that source of annual market anxiety.Also read | <a href="https://www.wionews.com/world/-it-s-close-to-over-trump-s-stunning-prediction-for-the-iran-war-revealed-1776214629874">'It's close to over': Trump’s stunning prediction for the Iran war REVEALED</a>

<blockquote class="twitter-tweet">Saudi Arabia Announces USD 3 Billion Additional Support, Extends USD 5 Billion Deposit: Finance Minister Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with… <a href="https://t.co/E8dXPg6g9Y">pic.twitter.com/E8dXPg6g9Y</a>&mdash; Ministry of Finance, Government of Pakistan (@Financegovpk) <a href="https://twitter.com/Financegovpk/status/2044247340308148616?ref_src=twsrc%5Etfw">April 15, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>Pakistan's financial woes</h2>Pakistan faces a $3.5 billion repayment to the UAE by the end of April. Reports indicate the UAE had been pressing for immediate settlement, while Saudi Arabia and Qatar have together assembled a combined $5 billion buffer to absorb the impact on Pakistan's reserves, which currently stand at roughly $16.4 billion. The government has set a target of reaching approximately $18 billion in reserves, equivalent to around 3.3 months of import cover, by the end of the fiscal year.Aurangzeb also noted that Pakistan had successfully repaid a $1.4 billion Eurobond last week, describing it as a "non-event".

After talks involving Pakistan's Finance Minister Muhammad Aurangzeb with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, Riyadh has agreed to a fresh $3bn deposit and easier terms on existing funds.

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Pakistan Foreign Ministry on Wednesday (Apr 15) announced that Saudi Arabia has agreed to $3 billion in fresh deposits, with disbursement expected in the coming week. The nation has also agreed to restructure an existing $5 billion facility on more favourable terms, announced Pakistan's Finance Minister Muhammad Aurangzeb. The announcement came on the sidelines of the IMF-World Bank Spring Meetings in Washington, following talks between Aurangzeb and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. The two had met previously in Islamabad last Friday, though Pakistani authorities deliberately held back from making any public statement until both sides had reached a formal agreement. This comes as Islamabad navigates a demanding external repayment schedule. Also read | 'Be careful...': Pope has a doctorate in theology, but JD Vance just told him he’s wrong about God Saudi commits to $3 billion in additional deposits to Pakistan "Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with disbursement expected in the coming week," announced Pakistan's Ministry of Finance on X. "The existing USD 5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period," added the post. The more consequential of the two developments may be the restructuring of the existing $5 billion deposit. Previously, that facility was subject to annual rollovers, a cycle that created recurring uncertainty for Pakistan's foreign exchange position and was entangled with IMF conditionalities. Under the new arrangement, the deposit will be extended for a longer, unspecified term, removing that source of annual market anxiety. Also read | 'It's close to over': Trump’s stunning prediction for the Iran war REVEALED

After talks involving Pakistan's Finance Minister Muhammad Aurangzeb with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, Riyadh has agreed to a fresh $3bn deposit and easier terms on existing funds.Scroll down to read more.

Saudi Arabia commits $3bn new deposit to Pakistan as Islamabad faces $3.5bn repayment to UAE

Pakistan's army chief arrived in Saudi Arabia on Monday, its embassy in Riyadh said, amid a diplomatic spat that has threatened Riyadh's financial life line to the cash-strapped South Asian nation.

Watch&nbsp;| <a href="https://www.wionews.com/south-asia/watch-ceiling-of-pakistan-airport-collapses-due-to-heavy-rains-321135">Ceiling of Pakistan airport collapses due to heavy rains</a>

General Qamar Javed Bajwa arrived in Riyadh at 10 a.m. (0700 GMT), the embassy said. A military source said the head of Pakistan's Inter-Services Intelligence (ISI) General Faiz Hameed is accompanying Bajwa.

Pakistan's army chief arrived in Saudi Arabia on Monday, its embassy in Riyadh said, amid a diplomatic spat that has threatened Riyadh's financial life line to the cash-strapped South Asian nation.

Pakistan's army chief arrived in Saudi Arabia on Monday, its embassy in Riyadh said, amid a diplomatic spat that has threatened Riyadh's financial life line to the cash-strapped South Asian nation. Watch | Ceiling of Pakistan airport collapses due to heavy rains General Qamar Javed Bajwa arrived in Riyadh at 10 a.m. (0700 GMT), the embassy said. A military source said the head of Pakistan's Inter-Services Intelligence (ISI) General Faiz Hameed is accompanying Bajwa.

Pakistan army chief arrives in Saudi Arabia to revive strained ties

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Saudi Arabia rolls over $3 billion financing to Pakistan as $10 billion US backstop fades

Saudi commits $3bn new deposit to Pakistan as it faces $3.5bn UAE repayment

Pakistan army chief arrives in Saudi Arabia to revive strained ties