ISLAMABAD: The government of Pakistan has initiated work on an alternative strategy aimed at increasing the country’s foreign exchange reserves.
According to the Ministry of Finance, several proposals were discussed to stabilize reserves following repayments related to Eurobonds and dues to the United Arab Emirates.
Sources revealed that Pakistan has approached Saudi Arabia for an additional deposit to strengthen its reserves. Discussions are also underway to double the volume of deferred oil payment facilities, which could ease immediate financial pressure.
In addition, talks have focused on attracting investment in key sectors such as solar energy, textiles, tourism, leather, pharmaceuticals, and minerals. Proposals also include extending the repayment period for oil imports under deferred payment arrangements.
Officials are further considering incorporating existing Saudi deposits into a broader financial or defense-related framework. Negotiations with Saudi Arabia are ongoing, though a final agreement has yet to be signed.
Overall, discussions are centered around a proposed package of up to $5 billion from Saudi Arabia, with targets set to raise foreign exchange reserves to $18 billion by June and $20 billion by December.
Sources added that the State Bank has the capacity to purchase dollars from the open market, noting that approximately $24 billion has been acquired over the past three years to support reserves.
Authorities say efforts are underway to ensure economic stability and strengthen Pakistan’s external financial position.
