The assistance comes as the South Asian nation faces pressure to repay $3.5 billion to the UAE

Saudi Arabia has pledged $3 billion in financial aid to Pakistan, the South Asian country's finance minister has said.

Pakistani Finance Minister Muhammad Aurangzeb announced on Tuesday that Saudi Arabia has committed $3 billion in additional deposits, with disbursement expected in the coming week. He is currently in Washington attending the World Bank-IMF Spring Meetings 2026.

Pakistani Prime MinisterShehbaz Sharifwill head to Saudi Arabia on Wednesday for an official visit.

Riyadh's assistance comes as Islamabad prepares to repay $3.5 billion to the United Arab Emirates (UAE) this month.

Earlier this month, Dawn newspaper reported that Abu Dhabi was seeking the immediate repayment of the loan that was provided to Islamabad as part of the external financing support extended by the UAE in 2019.

That aid was extended through the Abu Dhabi Fund for Development to help Islamabad tide over a balance of payments crisis.

The report said the UAE debt was rolled over multiple times, but the most recent extensions had shorter durations, indicating the Emirates' unease over the arrangement.

In 2024, Pakistan faced a debt crisis in the aftermath of the Covid lockdown, supply disruptions induced by the Ukraine conflict, and extensive floods that battered a third of the country. TheInternational Monetary Fund (IMF)had stepped in to provide a 3-year, $7 billion package.

Under its agreement with the IMF, Pakistan is required to secure around $12.5 billion in rollovers from China, Saudi Arabia, and the UAE to meet external financing needs and maintain its currency reserve levels.

The Dawn report indicated that the UAE will be replaced by Qatar.

Pakistan's ties with the UAE have been strained over the last year. While Islamabad has signed a mutual defense pact with Riyadh, Abu Dhabi has been moving to build a closer security partnership with New Delhi.

The UAE, which has remained a vital source of foreignremittances for Islamabad, also imposed visa restrictions affecting Pakistani nationals earlier this year.

(RT.com)