Pakistan has formally requested major financial support from Saudi Arabia, including converting the existing $5 billion deposit into a 10-year long-term facility.

The move comes as Islamabad faces growing economic pressure amid rising regional tensions and ongoing talks with the International Monetary Fund.

Pakistan has submitted eight key requests to Saudi authorities under a proposed framework for long-term economic cooperation.

One of the main proposals is to convert the current $5 billion Saudi deposit held in Pakistan’s reserves into a 10-year long-term facility, replacing the existing short-term arrangement.

Officials say the move would help stabilize Pakistan’s foreign exchange reserves and provide longer-term financial breathing space.

Request to expand deferred oil facility

Pakistan has also asked Saudi Arabia to increase the oil facility on deferred payment from the current $1.2 billion to $5 billion.

The proposal also seeks to extend the tenure of the facility, which allows Pakistan to import oil while delaying payments — a key tool for managing external account pressures.

Officials familiar with the discussions confirmed that Pakistan has put forward several additional proposals aimed at strengthening economic cooperation.

Key requests include:

Converting the $5 billion Saudi deposit into a 10-year facility
Increasing the oil facility from $1.2 billion to $5 billion
Securitizing $10 billion in funds belonging to Pakistanis abroad
Seeking Saudi guarantees for issuing global Sukuk bonds
Requesting a concessional credit line through Saudi Exim Bank
Removing the bank guarantee condition for investment and import transactions involving the Saudi Public Investment Fund

These measures are intended to attract investment, improve liquidity, and support Pakistan’s financial stability.

Regional tensions

Government sources said Pakistan’s economic challenges have intensified due to ongoing geopolitical tensions in the Middle East.

The pressure has increased amid the ongoing conflict involving the United States, Israel, and Iran, which has created uncertainty in regional markets and energy supplies.

Officials believe closer economic coordination with Saudi Arabia could help cushion Pakistan from the impact of regional instability.

IMF talks continue over $7bln program

Pakistan is simultaneously negotiating with the International Monetary Fund to complete the third review of its $7 billion Extended Fund Facility (EFF).

The government is also seeking flexibility in the IMF program, particularly regarding primary surplus targets, as economic pressures grow due to geopolitical developments.