ISLAMABAD: Pakistan is holding negotiations with Saudi Arabia and China to secure more than $3.5 billion in combined loans and investment support, according to a Bloomberg report citing people familiar with the matter.
The discussions come as Pakistan prepares to repay a $3 billion loan from the United Arab Emirates, after failing to secure a rollover agreement for the first time in seven years. The repayment is due by the end of the month, adding pressure on the countryâs foreign exchange reserves, which stand at around $16 billionâenough to cover roughly three months of imports.
Sources said the financial assistance under discussion includes both new loans and investment inflows. However, the talks remain private and have not been officially confirmed by the governments involved. Pakistanâs finance and foreign ministries, as well as Saudi Arabiaâs media ministry, did not immediately respond to requests for comment.
Saudi Finance Minister Mohammed Al-Jadaan recently visited Islamabad for high-level discussions with Pakistani officials. During the meeting, Prime Minister Shehbaz Sharif reaffirmed Pakistanâs commitment to expanding cooperation with Saudi Arabia in trade, investment, and broader economic development.
Pakistan and Saudi Arabia have strengthened economic and security ties in recent months. At the same time, Pakistan continues to rely heavily on Chinaâits largest bilateral creditorâowing more than $25 billion, with ongoing engagement under the China-Pakistan Economic Corridor (CPEC) framework.
Alongside bilateral support efforts, Pakistan has also reached an initial agreement with the International Monetary Fund for a $1.2 billion loan tranche under its $7 billion bailout program. The country has relied on IMF assistance multiple times over past decades as it navigates recurring balance-of-payment challenges.
