Pakistan has formally sought an extension of its $1.2 billion Saudi oil financing facility after fully utilising the arrangement over a 12-month period, sources familiar with the discussions said, though Saudi Arabia has yet to confirm whether the support will continue.
The oil financing facility, provided through the Saudi Fund for Development, supplied Pakistan with $100 million per month from May 2025 to April 2026.
The arrangement played a critical role in easing pressure on Pakistan’s external account during a period marked by tight global liquidity and ongoing economic reforms.
Federal Minister for Economic Affairs Ahad Cheema confirmed that the final tranche under the facility was drawn in April 2026, completing the full $1.2 billion utilisation.
Officials said Islamabad has now approached Saudi authorities to explore the possibility of extending the oil support into the next fiscal period.
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The oil financing was accompanied by broader financial backing from Riyadh. In April 2026, Saudi Arabia placed an additional $3 billion in deposits with the State Bank of Pakistan, raising its total deposits to $8 billion.
These inflows significantly strengthened Pakistan’s foreign exchange position during the month.
Official data released by the Economic Affairs Division showed that Pakistan secured $4.47 billion in external financing in April alone.
This included multilateral and bilateral loans, deposits, Eurobond proceeds, and commercial borrowing, a sharp increase compared to just $0.57 million recorded in the same month last year.
Cumulatively, Pakistan received $11.06 billion in foreign loans during the first 10 months of the current fiscal year, from July through April, compared to $6.08 billion in the corresponding period a year earlier.
Analysts say continued Saudi support remains crucial for Pakistan as it navigates external repayment obligations and works to stabilise its economy under IMF-backed reforms.
