Pakistan in talks with Saudi Arabia to convert $5bn deposit into investment

ISLAMABAD: Pakistan has requested Saudi Arabia to convert its existing $5 billion deposit into long-term investment as part of efforts to strengthen the country’s economy and reduce external financing pressures, sources said on Wednesday.

According to sources, Pakistan and Saudi Arabia are holding high-level talks on converting the Saudi deposit into investment. The two sides are also expected to resume negotiations on restoring the deferred oil payment facility for Pakistan.

Sources said discussions are underway with Saudi investors on various projects aimed at increasing Saudi investment in Pakistan. The negotiations involve Pakistan’s economic team and senior Saudi officials.

The talks are focused on easing Pakistan’s balance of payments and reducing pressure on external debt repayments, sources added.

Saudi officials have also shared a comprehensive economic framework with Pakistan’s economic team, outlining structural reforms, sustainable economic growth and long-term macroeconomic stability.

According to sources, the government is making efforts to transform Saudi financial support from deposits into productive investments that can generate long-term economic benefits.

Saudi officials have stressed the need for structural reforms and sustainable economic policies. Under the proposed Saudi framework, Pakistan has been presented with an implementation plan extending to 2035, aimed at addressing balance of payments challenges and increasing the country’s exports to nearly $100 billion.

Saudi Arabia announces $3bn additional support to Pakistan, extends $5bn deposit

Earlier, on April 15, 2026, Saudi Arabia extended its $5 billion deposit with Pakistan for another three years and also pledged an additional $3 billion in financial support.

Speaking to reporters in Washington, D.C., on the sidelines of the World Bank-IMF Spring Meetings 2026, Finance Minister Muhammad Aurangzeb had said the existing $5 billion Saudi deposit would no longer remain subject to the previous annual rollover arrangement and would instead remain in place under a longer-term framework.

The latest discussions signal Pakistan’s efforts to deepen economic cooperation with Saudi Arabia by shifting from short-term financial support to long-term investment and strategic economic partnership.