Pakistan Seeks Saudi Financial Support With Eight Proposals Amid Economic Pressure
Pakistan has approached Saudi Arabia for Saudi financial support through eight key proposals. Officials say the requests aim to ease economic pressure. Rising regional tensions and financial challenges pushed Islamabad to seek stronger cooperation.
Senior officials confirmed that Pakistan shared these proposals with the Kingdom of Saudi Arabia (KSA). Meanwhile, the country continues talks with the International Monetary Fund (IMF). These discussions focus on completing the third review of the $7 billion Extended Fund Facility programme.
Pakistan and Saudi Arabia already discussed a broader economic partnership. However, recent geopolitical tensions increased the urgency of these talks. As a result, Islamabad requested additional financial assistance to manage growing economic risks.
Key Financial Requests to Saudi Arabia
Pakistan first asked Saudi Arabia to convert its existing $5 billion deposits into a long-term facility. Currently, these funds remain with the State Bank of Pakistan as short-term deposits. Islamabad proposed extending the tenure to 10 years with favorable pricing.
Secondly, Pakistan requested an expansion of the oil facility on deferred payment. At present, the facility stands at $1.2 billion. The government wants to increase it to $5 billion with a repayment period extended from one year to three years.
In addition, Pakistan proposed securitising $10 billion in remittances sent by overseas Pakistanis. This plan could strengthen foreign exchange reserves. Consequently, the country may reduce reliance on expensive international borrowing.
Another proposal asks Saudi Arabia to guarantee Pakistan’s future international Sukuk bonds. Such support would help Islamabad raise funds from global markets at lower interest rates.
Investment and Trade Support Proposals
Pakistan also requested a concessional credit line for the newly established EXIM Bank. The bank aims to support export-led growth under the IMF programme.
Furthermore, Islamabad asked Saudi Arabia to waive bank guarantee requirements for certain import transactions. This step could make trade processes easier and faster.
The government also encouraged Saudi investment through the Public Investment Fund. Officials believe such investments could unlock new economic opportunities.
Finally, Pakistan asked Saudi Arabia to support adjustments to fiscal targets under the IMF programme. Authorities argue this flexibility would allow tax reforms without harming long-term economic stability. Saudi Arabia has not yet responded publicly to these proposals.
