Business Recorder
KARACHI: The Pakistan Business Forum (PBF) has welcomed the announcement by the Kingdom of Saudi Arabia to extend significant financial support to Pakistan, terming it a strong signal of renewed international confidence in the country’s economic trajectory and reform agenda. The kingdom most likely to pledged USD3 billion in fresh deposits, expected to be disbursed within the coming week. In addition, the existing USD5 billion Saudi deposit previously subject to annual rollover conditions will now be extended over a longer-term arrangement, easing short-term repayment pressures and strengthening Pakistan’s external account position. Ahmad Jawad, Chief Organiser PBF, stated this timely financial support from Saudi Arabia reflects deep-rooted bilateral relations and growing trust in Pakistan’s economic management. The shift from short-term rollovers to a longer-term deposit framework is particularly encouraging, as it enhances financial predictability and reduces external vulnerability.” He further emphasised that such commitments not only stabilise foreign exchange reserves but also send a positive signal to global investors and multilateral institutions. “This move will likely improve Pakistan’s sovereign credibility and create space for policy continuity, which is essential for sustainable economic growth,” he added. Amna Munawwar Awan, Senior Vice President PBF also welcomed the announcement, highlighting its broader economic implications. “The extended support from Saudi Arabia is not merely financial assistance—it is a strategic endorsement of Pakistan’s economic reforms. It will help ease pressure on the balance of payments and support exchange rate stability, which directly impacts business confidence and industrial planning.” She further noted that improved reserve buffers could contribute to lower inflationary pressures over time by stabilizing import costs and strengthening the Pakistani rupee. Chairman Punjab of Pakistan Business Forum, Malik Talat Suhail views this development as part of a broader regional economic alignment, where strategic partners are increasingly playing a stabilising role in Pakistan’s recovery phase. However, we stressed that external support must be complemented by internal structural reforms too included with the competitive taxation environment for businesses in the country. He also said the international community had particularly acknowledged Pakistan’s recent diplomatic and facilitative role in enabling dialogue between parties that had not held face-to-face talks for decades. Copyright Business Recorder, 2026
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