Pakistan Requests Conversion Of $5 Billion Saudi Deposits

March 9, 2026 Diplomats World

Pakistan has formally presented eight key proposals to Saudi Arabia seeking long-term economic cooperation, including a request to convert the existing $5 billion Saudi deposits held by Pakistan into a 10-year long-term financial facility.

Pakistan Seeks Long-Term Economic Support Package From Saudi Arabia

According to official details, the proposals were submitted as part of broader discussions between Islamabad and Riyadh on strengthening economic collaboration and financial support mechanisms.

Under the proposed framework, Pakistan has asked the Saudi government to convert the current short-term deposits of $5 billion into a long-term facility lasting ten years. The move is aimed at easing pressure on Pakistan’s external financing requirements and providing greater stability to the country’s foreign exchange reserves.

Pakistan Proposes Expanded Oil Facility And Financial Cooperation

In addition to the request regarding deposits, Pakistan has also sought an expansion of the oil supply facility currently provided by Saudi Arabia on deferred payment terms. Officials said Islamabad has proposed increasing the existing annual oil facility from $1.2 billion to $5 billion. Pakistan has also requested an extension of the duration of this arrangement to help manage energy import costs and reduce immediate financial burdens on the country’s balance of payments.

Another key proposal involves the securitization of remittances sent by overseas Pakistanis. Under this plan, Pakistan has suggested securitizing up to $10 billion worth of remittance inflows as part of efforts to enhance liquidity and strengthen financial stability.

Pakistan Presents Eight Economic Cooperation Proposals To Saudi Arabia

Senior government sources confirmed to The News that Pakistan’s economic challenges have intensified due to ongoing geopolitical tensions in the region. Officials said the current situation has created additional economic pressure amid the continuing conflict involving Iran and a coalition led by the United States and Israel.

The sources indicated that the regional security environment has had implications for economic stability and financial planning in Pakistan, making it increasingly important for the country to secure longer-term financial arrangements with key partners.

Pakistan and Saudi Arabia have already been engaged in discussions on a broader economic cooperation package aimed at expanding financial support, trade collaboration, and investment ties between the two countries. The proposals presented by Islamabad are part of those ongoing negotiations.

At the same time, Pakistan is continuing negotiations with the International Monetary Fund (IMF) regarding the completion of the third review under its $7 billion Extended Fund Facility (EFF) program.

Officials said the successful completion of the review is considered important for maintaining financial stability and ensuring the continuation of IMF support under the existing economic reform framework.

The IMF program remains a key component of Pakistan’s broader economic strategy, as the government works to stabilize the economy and address fiscal and external sector challenges.

Pakistan is continuing negotiations with the International Monetary Fund

Pakistan’s discussions with Saudi Arabia are being conducted alongside these IMF negotiations, reflecting Islamabad’s efforts to strengthen financial cooperation with key partners while managing economic pressures arising from global and regional developments.

Government officials said the proposed measures are intended to support Pakistan’s financial stability by improving access to longer-term financing and expanding existing support mechanisms.

The outcome of the discussions between Pakistan and Saudi Arabia will play an important role in shaping the next phase of economic cooperation between the two countries as Islamabad seeks additional financial support and investment partnerships.