Islamabad: Saudi Arabia has rolled over Pakistan’s $5 billion loan for a period of three years, providing continued financial support to the country’s external financing needs, according to informed sources.
The sources said the Kingdom agreed to extend the maturity of the $5 billion loan, which had originally been provided to help Pakistan meet its external payment obligations.
According to the sources, the financing was initially extended to enable Pakistan to make payments to the United Arab Emirates (UAE) as part of its external financial commitments.
The loan was reportedly originally provided for a period of three months, but Saudi authorities have now agreed to roll it over for three years, significantly easing Pakistan’s short-term repayment pressure.
The rollover is expected to support Pakistan’s foreign exchange position and strengthen confidence in the country’s external financing framework.
Saudi Arabia has been one of Pakistan’s key economic partners, providing financial assistance through deposits, deferred oil payment facilities, and other support mechanisms during periods of economic pressure.
The reported extension comes as Pakistan continues to manage its external debt obligations while seeking to maintain adequate foreign exchange reserves and financial stability.
At the time of reporting, no official statement had been issued by either the Government of Pakistan or the Saudi authorities regarding the reported rollover arrangement. However, the development is expected to provide relief to Pakistan’s external account and reduce immediate refinancing pressures.
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