$6 Billion Saudi Package to Bolster Pakistan’s Reserves and Budget

By Ahmed Jawad

Pakistan is set to receive over \$6 billion in financial support from Saudi Arabia in the upcoming fiscal year, a move expected to bolster its economy and address balance of payments concerns. The anticipated inflows include \$5 billion in time deposits, \$1 billion in oil supply under deferred payments, and \$46.4 million in direct economic assistance.

This Saudi support is part of Pakistan’s broader external financing strategy, which aims to secure $20.4 billion overall. China is expected to be the second-largest contributor, offering $4.37 billion—comprising \$4 billion in safe deposits and \$37 million in aid.

Other expected contributors include the United States, Germany, France, Japan, South Korea, and several Gulf nations, with Kuwait and Oman providing $21.4 million and $5.14 million respectively.

Remittances continue to play a vital role in stabilizing Pakistan’s economy. In 2024, remittances from Saudi Arabia alone reached $7.4 billion—about 25% of the total. Collectively, the six GCC countries sent $16.1 billion, accounting for more than half of Pakistan’s total remittance inflows, underscoring the region’s economic importance for the country.