Pakistan eyes over $6 billion in Saudi support as top foreign financier in FY26

Pakistan eyes over $6 billion in Saudi support as top foreign financier in FY26
Vehicles move past a shipping container yard along a road in Karachi, Pakistan, on June 10, 2025. (REUTERS/File)
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Updated 13 June 2025
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Pakistan eyes over $6 billion in Saudi support as top foreign financier in FY26

Pakistan eyes over $6 billion in Saudi support as top foreign financier in FY26
  • China, Pakistan’s largest trading partner, projected to be second-biggest lender with $4.37 billion
  • Budget documents also list smaller expected inflows from Kuwait ($21.4 million) and Oman ($5.14 million)

KARACHI: Saudi Arabia is expected to be Pakistan’s largest source of external financing in the upcoming fiscal year with over $6 billion in support as the South Asian country seeks to raise more than $20 billion from international lenders to uplift its fragile economy, official budget documents released this week showed.

In the 2025–26 fiscal year starting July 1, Pakistan aims to secure $6.46 billion from Riyadh, including $5 billion in time deposits, $1 billion in oil on deferred payments, and $46.4 million in economic assistance, according to the budget documents.

The financial support is intended to help stabilize the country’s external account and meet its balance of payments needs.

Islamabad has long relied on financial support from its Gulf and Chinese partners to shore up its foreign reserves and avoid default. In 2023, these inflows played a key role in helping Pakistan avert a sovereign debt crisis.

“The support from Saudi Arabia in the form of deposits and oil facility is undoubtedly the major source of the external stability,” said Shankar Talreja, head of research at Karachi-based Topline Securities.

Pakistan’s government unveiled a Rs17.6 trillion ($62 billion) federal budget on June 10, aiming to consolidate what it describes as fragile macroeconomic stability achieved under a $7 billion bailout loan from the International Monetary Fund (IMF).

Notably, Pakistan has not earmarked a specific amount under the International Monetary Fund (IMF) in its external financing estimates for 2025-26. The country is currently operating under a 37-month IMF Extended Fund Facility approved last year.

In total, Pakistan has budgeted for Rs5.78 trillion ($20.4 billion) in foreign assistance in FY26, including both loans and grants from bilateral and multilateral partners, to help shore up reserves and finance its current account. The country’s total external receipts for the year are budgeted at Rs20.3 trillion ($71.9 billion).

China, Pakistan’s largest trading partner and longtime ally, is projected to be the second-biggest lender after Riyadh with $4.37 billion, including $4 billion in “safe deposits,” a form of central bank support, and $37 million in economic assistance.

“China is a major bilateral partner… supporting Pakistan with both commercial loans and time deposits,” said Talreja. “Both types are refinanced and renewed annually.”

Pakistan’s multilateral lenders include the Asian Development Bank (ADB), World Bank, Islamic Development Bank (IsDB), Asian Infrastructure Investment Bank (AIIB), and others such as the United Nations, OPEC Fund, and International Fund for Agricultural Development (IFAD).

SMALLER LENDERS AND REMITTANCES

Besides Saudi Arabia and China, Pakistan will also seek smaller amounts of aid and financing from countries including the United States, France, Germany, Denmark, Italy, Japan, and South Korea, according to the budget documents, which also list smaller expected inflows from Kuwait ($21.4 million) and Oman ($5.14 million).

However, a long-delayed Saudi oil facility, initially expected last year, has yet to materialize. Media reports have suggested Riyadh has linked its final approval to progress on Saudi investment in Pakistan’s Reko Diq copper and gold mining project.

State media reported in September that Saudi Arabia had offered a 15 percent equity stake in the multibillion-dollar Reko Diq mine in Pakistan’s southwestern Balochistan province. The project, one of the world’s largest undeveloped copper-gold reserves, is operated by Canada’s Barrick Gold.

Islamabad also plans to raise $1.3 billion in commercial loans and $400 million through international bond issuances, though the finance ministry has not specified the sovereign guarantees or instruments.

Finance Minister Muhammad Aurangzeb has separately said the government aims to issue Panda bonds, yuan-denominated debt instruments issued in China, to raise around $200 million from Chinese investors to boost foreign exchange reserves.

In addition to official financing, Pakistan continues to benefit significantly from worker remittances, particularly from the Gulf region.

According to the Pakistan Economic Survey 2024–25, released this week, Saudi Arabia accounted for $7.4 billion in remittances in the last fiscal year, about 25 percent of the national total.

Remittances from all six Gulf Cooperation Council (GCC) countries — Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain — totaled $16.1 billion, or more than half of Pakistan’s total remittance inflows in 2024.

“In the GCC region, expanding Saudi mega-projects led to higher migrant employment, further contributing to inflows,” the economic survey said.

“It’s not just deposits and oil facilities helping Pakistan,” added Talreja. “Remittances from Saudi Arabia alone are a quarter of Pakistan’s total remittances.”

“Saudi Arabia is a key nation for Pakistan in terms of foreign inflows, whether in the form of remittances or economic assistance,” Sana Tawfik, head of research at Arif Habib Ltd. said.


Pakistani commerce minister embarks on ‘pivotal’ UK visit to deepen economic ties

Pakistani commerce minister embarks on ‘pivotal’ UK visit to deepen economic ties
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Pakistani commerce minister embarks on ‘pivotal’ UK visit to deepen economic ties

Pakistani commerce minister embarks on ‘pivotal’ UK visit to deepen economic ties
  • The UK maintains zero-tariff access of Pakistan’s exports post-Brexit, making it Islamabad’s largest European export partner
  • The Pakistan-UK trade in goods and services reached £4.7 billion in 2024, an increase of 7.3 percent, compared to the previous year

ISLAMABAD: Pakistani Commerce Minister Jam Kamal Khan has embarked on a “pivotal” official visit to the United Kingdom (UK) from July 14 till July 20 to strengthen economic ties between the two countries, Khan’s ministry said on Sunday.

The minister is accompanied by Commerce Secretary Jawad Paul and this high-level visit aims to deepen bilateral commercial ties, strengthen institutional frameworks, and open new avenues for trade and investment between Pakistan and the UK.

Khan will engage with major Chambers of Commerce in London and Birmingham to advance bilateral trade and explore opportunities in emerging sectors, besides highlighting Pakistan’s export potential and fostering greater business-to-business collaboration.

“One of the central moments of the visit will be the signing of the Terms of Reference (ToRs) for the Pakistan-UK Trade Dialogue,” the commerce ministry said.

“This formalization marks a significant step toward institutionalizing bilateral trade cooperation, injecting greater standardization, transparency, and predictability into the economic relationship between the two countries.”

The UK maintains zero-tariff access of Pakistan’s exports post-Brexit, making it Pakistan’s largest European and third-largest individual export partner, according to the Pakistani foreign ministry.

The Pakistan-UK trade in goods and services reached £4.7 billion in 2024, an increase of 7.3 percent, or £320 million, compared to the previous year, according to the UK government data. Of this £4.7 billion, UK exports to Pakistan amounted to £2.2 billion, while its imports from Pakistan amounted to £2.5 billion.

During his visit, the Pakistani commerce minister is scheduled to meet with members of the UK’s All Parties Parliamentary Group (APPG), where he will advocate for stronger political support in enhancing trade and investment flows, according to the commerce ministry.

These discussions will aim to align parliamentary efforts with Pakistan’s broader economic diplomacy goals and strengthen long-term partnerships.

“Khan will interact with leading UK-based multi-million-dollar companies from key sectors such as food processing, information technology, engineering, fintech, and capital investment. These meetings aim to showcase Pakistan’s economic potential and attract targeted investments into high-growth industries,” the commerce ministry said.

“The visit also includes important meetings with the UK Pakistan Business Council, Pakistan Britain Business Council, and UK Pakistan Chamber of Commerce & Industry. These discussions will focus on strengthening institutional trade linkages and leveraging diaspora-led initiatives to boost trade volumes and visibility in the UK market.”

Pakistan is currently striving to draw overseas investment amid a gradually healing macroeconomic environment after a prolonged downturn that forced Islamabad to seek external financing from friendly nations and multiple loan programs from the International Monetary Fund (IMF).

Khan’s visit follows another trip to the UK in June by Pakistan’s Finance Minister Muhammad Aurangzeb and Prime Minister Shehbaz Sharif’s aide on privatization, Muhammad Ali, who held meetings with executives from renowned firms, including TTB Partners, STJ Partners, Deutsche Bank, Berenberg Bank, and Amundi Fund Group, to spotlight Pakistan’s privatization roadmap and its growing potential as a hub for strategic, long-term investment.

The Pakistani commerce ministry said Khan’s visit marks a “renewed thrust in Pakistan’s efforts to advance economic diplomacy, diversify export markets, and solidify its commercial footprint in global markets like the United Kingdom.”


Pakistan minister to attend tomorrow tri-nation conference in Tehran on pilgrim, border issues

Pakistan minister to attend tomorrow tri-nation conference in Tehran on pilgrim, border issues
Updated 51 min 44 sec ago
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Pakistan minister to attend tomorrow tri-nation conference in Tehran on pilgrim, border issues

Pakistan minister to attend tomorrow tri-nation conference in Tehran on pilgrim, border issues
  • The Pakistan-Iran-Iraq conference is being convened on Islamabad’s request
  • Thousands of Pakistanis travel to the two countries annually to visit holy sites

KARACHI: Pakistan’s Interior Minister Mohsin Naqvi is undertaking an official visit to Tehran to attend a tri-nation conference on pilgrim and border issues, the Pakistani interior ministry said on Sunday.

The conference of interior ministers from Pakistan, Iran and Iraq is being convened on a request from Islamabad, according to the Pakistani interior ministry.

Thousands of Pakistani Shiite Muslims, who travel annually to Iran and Iraq to visit holy sites, have often complained of issues at the border.

“Interior Minister Mohsin Naqvi will attend the trilateral conference on pilgrims and border issues in Tehran tomorrow,” the Pakistani interior ministry said on Sunday. “Naqvi will also meet with Iranian President Masoud Pezeshkian.”

Last month, Pakistan evacuated over 260 nationals from Iraq and another 450 Pakistanis who had been stranded in Iran during the Tehran-Israeli conflict.

The 12-day war between Iran and Israel, which began on June 13 Israeli airstrikes on Iranian nuclear facilities and military leadership, raised alarms in a region that was already on edge since the start of Israel’s war on Gaza in October 2023.

Pakistan remained engaged in talks with regional partners like Saudi Arabia, Iran, China and Qatar to de-escalate tensions in the Middle East after Iran conducted retaliatory strikes on Israel and a US base in Qatar, raising fears the conflict could draw in other regional states.


Imran Khan’s party says has launched 90-day ‘do-or-die’ movement against government

Imran Khan’s party says has launched 90-day ‘do-or-die’ movement against government
Updated 13 July 2025
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Imran Khan’s party says has launched 90-day ‘do-or-die’ movement against government

Imran Khan’s party says has launched 90-day ‘do-or-die’ movement against government
  • Ali Amin Gandapur, KP chief minister and a close Imran Khan aide, says movement to ‘reach its peak’ on August 5
  • Information Minister Attaullah Tarar calls the announcement a ‘political gimmick,’ saying Khan’s party is ‘heading toward irrelevance’

ISLAMABAD: Former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party announced on Sunday that its 90-day “do-or-die” protest movement against the government has begun, saying that it would determine the future of the party. 

Earlier this month, the PTI announced it would launch a nationwide protest movement after the Islamic month of Muharram, following a ruling by Pakistan’s top court denying the party reserved parliamentary seats for minorities and women.

Tensions further escalated days earlier when 26 PTI provincial lawmakers were suspended by the speaker of the Punjab Assembly for 15 sessions, after they protested during Chief Minister Maryam Nawaz Sharif’s speech on June 27.

Gandapur arrived in the eastern city of Lahore from KP on Saturday to discuss the party’s political strategy and finalize its protest movement against the government.

“We have announced a 90-day protest movement, which began yesterday [Saturday]… And it will be a do-or-die [movement] for us, whether we remain there [in KP government] or not,” Gandapur, flanked by the PTI’s leadership, told reporters at a news conference in Lahore.

The KP chief minister vowed that the party’s anti-government protest movement will “reach its peak” on August 5, marking two years since Khan was arrested after being convicted by a court for illegally selling state gifts. 

Federal Information Minister Attaullah Tarar termed the PTI protest movement a “political gimmick,” saying that Khan’s party had made several such announcements.

“He [Gandapur] has made several such announcements and these are political gimmicks,” Tarar told Arab News.

“PTI has lost street power and its credibility, and is heading toward irrelevance,” the minister added.

Khan, who has remained in prison since then, says the charges against him are politically motivated and has denied wrongdoing. His party has held various protests demanding his release and an independent investigation into the elections of February 2024. 

Pakistan’s government has denied the PTI’s allegations and says the elections of February 2024 were transparent. It accuses the former prime minister and his party of attempting to disrupt the government’s efforts to achieve sustainable economic growth through violent protests.

In one of the PTI’s protests in November last year, the government said four troops were killed in clashes with Khan supporters. The PTI rejects this allegation. 

‘REAL DECISION-MAKERS’

Gandapur alleged that the PTI was being denied its right to hold peaceful protests, vowing that it would now mobilize people across the country.

“We will announce a plan accordingly, after taking all our local workers and leaders into confidence on how to proceed with this movement,” the chief minister said. 

On holding talks with the government, Gandapur said his government was ready to hold talks but with the “real decision-makers,” indirectly referring to the military. 

“Imran Khan has very clearly said this, ‘[I] will only negotiate with those who are decision-makers. What’s the point of talking to someone who doesn’t have any authority?’,” Gandapur said. 

Pakistan’s military says it does not interfere in political issues and rejects the PTI’s allegations that it conspired with Khan’s political opponents to oust his government in a parliamentary vote in April 2022.


Pakistan says atrocities in Palestine, Serbia must not go ‘unnoticed’

Pakistan says atrocities in Palestine, Serbia must not go ‘unnoticed’
Updated 13 July 2025
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Pakistan says atrocities in Palestine, Serbia must not go ‘unnoticed’

Pakistan says atrocities in Palestine, Serbia must not go ‘unnoticed’
  • State minister for overseas Pakistanis participates in memorial service for victims of 1995 Srebenica massacre
  • Aun Chaudhry expresses solidarity with oppressed communities in Palestine and Kashmir, reports state media

ISLAMABAD: Pakistan’s State Minister for Overseas Pakistanis Aun Chaudhry reaffirmed Islamabad’s commitment to protecting human rights globally, urging the world not to let atrocities in Palestine, Serbia and Kashmir go “unnoticed,” state-run media reported on Sunday.

Chaudhry was in Potočari, Bosnia, where he took part in a solemn memorial service in remembrance of the 30th anniversary of the 1995 killings in Srebenica. According to the UN, the Bosnian Serb army overran Srebrenica in July 1995, previously declared a safe area under a UN Security Council resolution, and brutally murdered thousands of men and teenagers there.

Chaudhry laid a floral wreath at the memorial site, paying tribute to those who were massacred in the event 30 years ago. He also spoke about the rights of the people of Gaza, where Israel has killed at least 57,882 Palestinians since the start of the war in 2023, according to the health ministry there. 

“Aun Chaudhary stressed that atrocities whether in Serbia, Palestine, Kashmir or anywhere else in the world must not go unnoticed,” state broadcaster Radio Pakistan reported. 

He reaffirmed Pakistan’s unwavering commitment to the protection of human rights globally, expressing solidarity with oppressed communities in Palestine and Kashmir, the state broadcaster said.

Pakistan, which does not have diplomatic ties with Israel, has consistently criticized Tel Aviv and called on world powers to intervene for an immediate ceasefire in Gaza.

Islamabad has repeatedly demanded an independent Palestinian state, with Al Quds Al Sharif as its capital and as per the pre-June 1967 border.


Pakistan’s Nadeem, India’s Chopra to reignite javelin rivalry in Poland in August

Pakistan’s Nadeem, India’s Chopra to reignite javelin rivalry in Poland in August
Updated 13 July 2025
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Pakistan’s Nadeem, India’s Chopra to reignite javelin rivalry in Poland in August

Pakistan’s Nadeem, India’s Chopra to reignite javelin rivalry in Poland in August
  • Arshad Nadeem and Neeraj Chopra to face off in Wanda Diamond League 2025 competition in Silesia in August
  • Two last faced each other in August 2024 at Paris Olympics where Nadeem won gold with 92.97-meter throw5

ISLAMABAD: Pakistan’s javelin star Arshad Nadeem and India’s Neeraj Chopra will reignite their rivalry in August when the two sportsmen compete at the Silesia Wanda Diamond League 2025 competition scheduled to be held in Poland, the official website of the Olympics said this week. 

This will be the first time Nadeem and Chopra will face each other since their charged encounter at the Paris 2024 Olympic final, where Nadeem clinched gold ahead of Neeraj with an Olympic record-shattering throw of 92.97 meters. 

The Wanda Diamond League is an annual sports competition featuring elite athletes across sprints, jumps, throws and distance events. The competition is set to take place next month in Silesia on August 16. 

“Neeraj Chopra will face Arshad Nadeem,” the Olympics website said, quoting the Diamond League organizers.

“The Indian-Pakistani battle awaiting the Polish fans will be the first opportunity for revenge after the Paris Olympics.”

Chopra has had an impressive year so far, kicking off his season with a win at the Potch Invitational in South Africa before finishing second at the Doha Diamond League, where he breached the coveted 90-meter barrier with a massive 90.23m throw — a new national record. 

The Indian athlete then had to settle for a second-place finish again at the Janusz Kusocinski Memorial in Poland but returned to winning ways at the Paris Diamond League. Since then, he has logged back-to-back wins at the Ostrova Golden Spike in Czechia and the NC Classic in India.

Nadeem, meanwhile, recently marked a triumphant return to action by winning gold at the Asian Athletics Championships in Gumi, Korea. He hadn’t competed since his Paris 2024 exploits.

Rivalries, particularly between athletes or teams from bitter rivals India and Pakistan, have always been one of the most intriguing aspects of sports. 

However, next month’s competition will have added flair to it, considering the militaries of the two countries engaged in the worst fighting between them in decades in May.

An attack in Indian-administered Kashmir triggered a conflict between the two states that saw them target each other with missiles, drones, fighter jets and artillery fire before agreeing to a ceasefire on May 10.