Pakistan is seeking a deeper and longer-term economic partnership with Saudi Arabia, submitting a set of new proposals aimed at securing lasting financial support and easing pressure on its strained economy, according to the Nation.
According to official sources, Islamabad recently presented eight proposals to Riyadh, each designed to strengthen bilateral economic cooperation and stabilize Pakistan’s financial position as the country faces rising global oil prices and regional uncertainty.
One of the key suggestions includes converting a $5 billion Saudi deposit currently held by the State Bank of Pakistan into a long-term facility with a maturity period of up to ten years. This move would provide Pakistan with more predictable financial breathing space and reduce short-term repayment risks.
Islamabad has also asked to expand the deferred oil payment arrangement from the present $1.2 billion to $5 billion allowing it to import petroleum now and settle payments later. This mechanism helps the country manage its foreign reserves better while ensuring a steady energy supply.
Given ongoing instability in the Middle East, Pakistani officials have also requested an extension of the oil facility’s duration, hoping to secure steadier energy inflows amid the volatile global market.
In another innovative step, Pakistan proposed securitizing up to $10 billion in remittances sent by overseas Pakistanis. By turning future remittance flows into a financial instrument, the government hopes to unlock new sources of funding while deepening economic trust between the two nations.
These proposals coincide with ongoing talks between Pakistan and the International Monetary Fund (IMF) over the third review of a $7 billion program under the Extended Fund Facility. As Pakistan negotiates its fiscal path with global lenders, it is also turning to Saudi Arabia, a longtime ally, for sustained economic partnership.
Officials in both countries say the discussions reflect not only financial cooperation but a shared willingness to build a broader, more enduring economic relationship.
