Pakistan’s Finance Minister Muhammad Aurangzeb has thanked Saudi Arabia for its important role in helping the country secure a $7 billion loan from the International Monetary Fund (IMF). The meeting took place in Washington, D.C., during the IMF-World Bank Spring Meetings, where Aurangzeb met with Saudi Finance Minister Mohammed Aljadaan.
During their discussion, Aurangzeb invited his Saudi counterpart to visit Pakistan. The invitation comes as both countries continue to strengthen their economic relationship.
Saudi support helped unlock IMF funding
The IMF approved a $7 billion Extended Fund Facility for Pakistan in September 2024. The deal was made possible after Saudi Arabia, the United Arab Emirates, and China gave key financial guarantees.
Pakistan had been facing a shortage of foreign reserves and growing economic pressure. The IMF package helped the country avoid a serious financial crisis and gave time for much-needed reforms.
Finance minister highlights Saudi contribution
After the meeting, Pakistan’s finance ministry issued a statement saying that Minister Aurangzeb thanked Saudi Arabia for its ongoing support of Pakistan’s economic goals, including its help in securing the IMF agreement. He also invited Mohammed Aljadaan to visit Pakistan and explore further opportunities for cooperation.
Aurangzeb stressed Pakistan’s commitment to long-term reforms and welcomed new investments from Saudi Arabia.
Push for faster disbursement under oil facility
Earlier in the week, Aurangzeb also met with Sultan bin Abdulrahman Al-Murshid, a top official from the Saudi Fund for Development. The two discussed the $1.2 billion Saudi Oil Facility, which allows Pakistan to pay for oil imports on a delayed schedule.
Aurangzeb asked for quicker payments to help ease pressure on Pakistan’s economy. He also reviewed the Saudi fund’s projects in Pakistan and expressed satisfaction with the speed of development.
Highway and infrastructure support
During the same meeting, Aurangzeb requested financial backing for the construction of National Highway N-25. This road project is expected to boost trade and improve transport in key areas of Pakistan.
The finance minister noted that Saudi-funded development projects in the country are making good progress and are being implemented efficiently.
Stronger ties through trade and investment
Pakistan and Saudi Arabia have been increasing cooperation in recent months. In October 2024, Prime Minister Shehbaz Sharif visited Riyadh. During that trip, the two countries signed 34 memorandums of understanding covering a range of sectors, including energy, trade, and agriculture.
These agreements were expected to bring in around $2.8 billion in new investments. By December 2024, seven of these MoUs had become firm agreements worth $560 million, with several projects already underway.
A long history of support
Saudi Arabia has been a reliable partner to Pakistan for many years. The Kingdom has supported Pakistan through financial aid, oil on deferred payment, and direct investments in key sectors.
This partnership continues to grow as both sides look for new ways to work together. Their latest meetings show a shared interest in building a more stable and prosperous future for both countries.
