Amid rising economic pressure and regional tensions, Pakistan has turned to Saudi Arabia for long-term financial assistance. Officials proposed converting existing short-term deposits into a 5 Billion Lifeline over 10 years.
A report by a private TV channel said Islamabad formally submitted eight major requests to Riyadh for economic cooperation. The proposals aim to strengthen Pakistan’s financial stability during a period of mounting economic and geopolitical challenges.
One of the most important requests is the conversion of the current $5 billion short-term deposits from Saudi Arabia into a 10-year facility. This 5 Billion Lifeline would ease immediate pressure on Pakistan’s foreign exchange reserves and provide the government with crucial financial breathing space.
Pakistan also requested an expansion of the deferred oil payment facility currently offered by Saudi Arabia. Officials proposed increasing the program from $1.2 billion to $5 billion and extending the repayment period. This would ensure the country can secure essential energy supplies without facing immediate financial strain.
Another proposal includes securitizing up to $10 billion of remittances sent by overseas Pakistanis. This plan is expected to unlock additional liquidity and support the struggling economy. Authorities emphasized that these requests come amid intensified economic challenges, worsened by regional tensions linked to the ongoing conflict involving Iran, the United States, and Israel.
At the same time, Pakistan is negotiating with the International Monetary Fund (IMF) to complete the third review of its $7 billion Extended Fund Facility (EFF) program. Finalizing this review is critical for unlocking further financial support and stabilizing the national economy.
Talks between Islamabad and Riyadh on a broader economic cooperation package were already underway. However, the rapidly evolving geopolitical situation has increased the urgency of these discussions. The proposed 5 Billion Lifeline could provide Pakistan with long-term financial security and help it navigate both domestic and regional economic challenges.
Officials say that if approved, the 5 Billion Lifeline and other measures could be instrumental in maintaining economic stability while ensuring the country can meet critical energy and fiscal needs.
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