KARACHI: Saudi Arabia is expected to be Pakistan’s largest source of external financing in the upcoming fiscal year with over $6 billion in support as the South Asian country seeks to raise more than $20 billion from international lenders to uplift its fragile economy, official budget documents released this week showed.
In the 2025–26 fiscal year starting July 1, Pakistan aims to secure $6.46 billion from Riyadh, including $5 billion in time deposits, $1 billion in oil on deferred payments, and $46.4 million in economic assistance, according to the budget documents.
The financial support is intended to help stabilize the country’s external account and meet its balance of payments needs.
Islamabad has long relied on financial support from its Gulf and Chinese partners to shore up its foreign reserves and avoid default. In 2023, these inflows played a key role in helping Pakistan avert a sovereign debt crisis.
“The support from Saudi Arabia in the form of deposits and oil facility is undoubtedly the major source of the external stability,” said Shankar Talreja, head of research at Karachi-based Topline Securities.
