Pakistan Prime Minister Shahbaz Sharif is on a tour of three countries, Saudi Arabia, Qatar and Turkey. During PM Shahbaz’s visit, Saudi Arabia has given assistance of 2 billion dollars to Pakistan. Actually, Pakistan was asked by the United Arab Emirates (UAE) to return the loan of three billion dollars by the end of this month. In such a situation, Pakistan has now sought help from Saudi Arabia, so that it can repay the loan taken from UAE.

Pakistani media Dawn reported that the State Bank of Pakistan (SBP) confirmed on Thursday (April 16, 2026) that Pakistan has received $ 2 billion from Saudi Arabia. The Central Bank said that the amount was received in the value date of April 15, 2026. This development has happened at a time when Prime Minister Shehbaz Sharif has gone to Saudi Arabia to promote peace in the Middle East and take forward diplomatic efforts.

According to Dawn, a day earlier Saudi Arabia had promised to provide an additional $3 billion in deposits to Pakistan and extended its existing $5 billion facility for three years. Pakistan Finance Minister Muhammad Aurangzeb said that the existing $5 billion Saudi deposit will no longer be covered under the previous annual rollover arrangement and instead it will be extended for a longer period.

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The economic condition of Pakistan has become very bad, inflation in the country has crossed its limit. Pakistan has high foreign debt and is already under pressure from the economic impact of rising global crude oil prices and tensions in the Middle East.

Dawn quoted official figures as saying that as of March 27, Pakistan’s foreign exchange reserves stood at $16.4 billion, which is enough to cover about three months of imports. However, the need for repayment from the UAE has put new pressure on the country’s economy.

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In March, Pakistan failed to reach an agreement with the United Arab Emirates to extend the $3.5 billion facility. This was the first such failure in seven years and raised concerns about the short-term financing gap.

Pakistani media don admitted that Pakistan’s foreign exchange position is under pressure. It remains part of a larger stabilization effort under IMF-backed reforms. Analysts say external funding risks remain a major weakness, especially amid volatile energy prices and limited global capital markets.