Islamabad (TDI): Pakistan has requested significant financial support from Saudi Arabia as part of a broader economic cooperation framework, including converting an existing $5 billion Saudi deposit into a 10-year facility and expanding an oil supply arrangement on deferred payments.
According to official sources, Islamabad has made eight proposals to Riyadh aimed at stabilizing the country’s finances amid rising geopolitical tensions linked to the conflict involving Iran, the United States and Israel, The News reported.
One of the key requests involves converting the $5 billion already deposited by Saudi Arabia with the State Bank of Pakistan into a long-term facility lasting 10 years on favourable terms. Pakistan has also asked Riyadh to increase the oil supply facility on deferred payments from $1.2 billion to $5 billion and extend the repayment period from one year to three years.
Another proposal seeks the securitisation of around $10 billion in remittances sent by the Pakistani diaspora abroad. Officials believe such a mechanism could strengthen foreign exchange reserves and reduce reliance on costly international borrowing.
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Pakistan has also requested Saudi guarantees for future international Sukuk issuances to help the country access global capital markets at lower rates. In addition, Islamabad has sought a concessional credit line for the EXIM Bank of Pakistan to support export-led growth under the ongoing reform program.
The government further asked Saudi Arabia to consider easing bank guarantee requirements for Pakistan-related import transactions and to explore investment opportunities through the Saudi sovereign wealth vehicle, the Public Investment Fund.
Officials said Islamabad also raised the issue of adjusting fiscal targets under the country’s economic program with the International Monetary Fund, particularly the primary surplus requirements, to allow tax reforms while managing rigid expenditure commitments.
Pakistan and Saudi Arabia have been negotiating a broader economic partnership, and the recent regional escalation has accelerated discussions at senior levels. However, there has been no immediate official response from Riyadh regarding the proposals.
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Pakistan is currently engaged in talks with the IMF for the completion of the third review of its $7 billion Extended Fund Facility program as it seeks additional financial stability amid external pressures on its economy.
