Pakistan needs help with debt repayment. Two Gulf allies just stepped in. Saudi Arabia and Qatar provide 5 billion financial assistance to Pakistan as the country prepares to repay roughly 3.5 billion dollars to the United Arab Emirates by the end of April. The expected inflows will help Islamabad manage pressure on its foreign exchange reserves.

Prime Minister Shehbaz Sharif discussed the assistance during meetings with Saudi Finance Minister Mohammed bin Abdullah Al Jadaan. Deputy Prime Minister Ishaq Dar and Army Chief Asim Munir also attended the talks in Islamabad. Both sides reviewed economic cooperation amid heightened geopolitical tensions in the Middle East. No formal agreements were signed, but discussions have been underway for weeks.

Pakistan has requested additional support from Riyadh. This includes an extension of the existing oil financing facility and expansion of Saudi cash deposits held with the central bank. Saudi Arabia and Qatar provide 5 billion financial assistance at a critical time. Reserves currently stand at about 16.4 billion dollars. The support will help maintain external payment capacity through June as higher import costs and regional tensions weigh on the balance of payments.

Authorities are also engaging with international partners ahead of upcoming financial meetings in Washington. Policymakers seek to secure additional buffers against external financing risks.