Pakistan seeks bigger Saudi oil support and long-term deposit rollover
“Pakistan has sought a larger Saudi oil facility and a 10-year rollover of a $5 billion deposit to ease mounting external pressure.”
Key points
- Pakistan has sought a larger Saudi oil facility and a 10-year rollover of a $5 billion deposit to ease mounting external pressure.
- The requests form part of a wider effort to secure liquidity and stabilise the economy amid regional turmoil.
Pakistan has asked Saudi Arabia for a broader financial support package as economic pressures mount amid heightened regional instability. According to the report, Islamabad wants Riyadh to convert an existing $5 billion short-term deposit into a 10-year facility and expand its deferred oil payment arrangement from $1.2 billion to $5 billion.
Officials are also seeking other forms of long-term cooperation, including securitisation of Pakistani diaspora remittances, sovereign backing for future international Sukuk issuance and a concessional credit line for the EXIM Bank of Pakistan. The proposals are part of wider economic discussions already underway between the two countries.
The outreach comes as Pakistan remains engaged with the IMF under its Extended Fund Facility and tries to strengthen foreign exchange buffers, reduce costly borrowing and manage the fallout from regional conflict-driven market stress.
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