ISLAMABAD: Saudi Arabia and Qatar have assured Pakistan of five billion dollars in financial assistance enabling Islamabad to avert immediate stress on its weak foreign reserves while meeting external payments through June. 

Pakistani official sources confirmed the pledge to Anadolu Agency on Saturday as the country prepares to repay a three point five billion dollar debt to the United Arab Emirates by the end of April. 

State Bank of Pakistan held foreign exchange reserves stood at sixteen point four billion dollars as of early April with total liquid reserves including commercial banks reaching twenty one point eight nine billion dollars. 

Without fresh inflows officials had warned reserves could decline sharply amid rising import costs and ongoing Middle East tensions. 

The development follows a crucial Friday night meeting in Islamabad between Saudi Finance Minister Mohammed bin Abdullah Al Jadaan and Prime Minister Shehbaz Sharif. 

Foreign Minister Ishaq Dar and Chief of Army Staff General Asim Munir attended the session focused on economic cooperation and regional issues. 

Pakistan had sought expansion of existing Saudi cash deposits and an extension of its oil financing facility due to expire later this month. 

No formal agreements emerged from the meeting yet finance ministries of both sides had begun discussions weeks earlier. 

Riyadh’s support arrives amid mounting external pressures and a reported rift with the UAE adding geopolitical weight to the assistance. 

Qatar’s participation in the package highlights broader Gulf backing for Pakistan’s economic stability. 

The five billion dollar inflow is expected to cover key debt obligations and maintain reserve buffers through the critical June period. 

Pakistan’s reserves have hovered near vulnerable levels with the three point five billion dollar UAE repayment representing over twenty percent of State Bank holdings. 

Reuters reports confirm Abu Dhabi demanded immediate settlement ending years of routine rollovers on friendly country deposits. 

Historically Saudi Arabia has extended billions in deposits and deferred payments during Pakistan’s past crises including post flood recovery phases. 

Islamabad recently submitted an eight pillar request to Riyadh seeking to convert a five billion dollar deposit into a ten year facility and expand oil credit lines up to five billion dollars. 

The fresh pledge aligns with State Bank projections aiming to lift total reserves toward eighteen billion dollars by June. 

Pakistan continues parallel talks with international partners ahead of key Washington meetings likely linked to IMF programme targets. 

Rising global energy prices and import bills have kept pressure on the current account despite resilient remittances. 

Economists note the Gulf support could prevent a balance of payments squeeze and stabilise the rupee which faced volatility earlier this year. 

The meeting underscored Pakistan’s strategic ties with Riyadh and Doha particularly as Middle East tensions influence regional financing. 

Senior Pakistani officials described the assurance as timely and reflective of longstanding brotherhood between the nations. 

The UAE repayment marks a shift in bilateral financial dynamics yet does not diminish overall Gulf commitment to Islamabad. 

Friendly countries currently hold around twelve billion dollars in deposits previously extended on flexible terms. 

This latest assistance is viewed as a confidence booster for investors and multilateral lenders monitoring Pakistan’s external position. 

With reserves now protected through mid year the government can focus on structural reforms and export growth targets. 

Analysts project the inflows will help maintain import cover ratios above three months a key threshold for economic confidence. 

Pakistan’s engagement with Saudi Arabia also includes potential investments in energy and infrastructure sectors discussed in parallel forums. 

The episode highlights Islamabad’s proactive diplomacy in securing bilateral lifelines amid a complex global debt environment. 

Official sources remain optimistic about further deepening economic partnerships with Gulf allies in the coming months. 

The development has eased immediate market jitters and reinforced expectations of steady reserve build up through the fiscal year. 

Pakistan continues to navigate post crisis recovery while leveraging strategic alliances for sustainable financial health.