ISLAMABAD: Pakistan has approached Saudi Arabia with multiple requests for long-term economic cooperation, including a proposal to convert the existing $5 billion Saudi deposit into a 10-year facility.
According to sources, Islamabad has formally presented eight proposals to Riyadh aimed at strengthening long-term financial support and easing pressure on the country’s foreign exchange reserves.
One of the key proposals seeks to extend the current $5 billion Saudi deposit, which is currently held with the State Bank of Pakistan, into a long-term arrangement lasting up to ten years.
Pakistan has also requested Saudi authorities to expand the deferred oil payment facility from the current $1.2 billion to $5 billion. The facility allows Pakistan to import oil from Saudi Arabia with payments made later, helping reduce immediate pressure on the country’s foreign exchange reserves.
Sources said Pakistan has further requested an extension in the duration of the oil facility to ensure energy supply stability amid global uncertainty triggered by escalating tensions in the Middle East.
In addition, Islamabad has proposed the securitisation of up to $10 billion in remittances sent by overseas Pakistanis as part of broader financial cooperation initiatives.
Officials say the requests come as Pakistan faces economic pressure due to rising global oil prices and regional geopolitical tensions linked to the ongoing Middle East conflict.
Meanwhile, Pakistan is also in talks with the International Monetary Fund (IMF) for the completion of the third review under the $7 billion Extended Fund Facility programme.
Pakistan and Saudi Arabia had already been engaged in discussions on a broader economic cooperation package aimed at strengthening bilateral economic ties and supporting Pakistan’s financial stability.
