Islamabad, Riyadh Discuss Investment and Deferred Oil Facility
Pakistan has asked Saudi Arabia to convert its existing $5 billion financial deposit into long-term investment as part of efforts to strengthen the country’s economy and reduce external financing pressures, according to official sources.
Sources said high-level discussions are underway between Pakistani and Saudi officials on transforming the deposit into productive investments that could provide lasting economic benefits instead of short-term financial support.
The two sides are also expected to resume negotiations on restoring the deferred oil payment facility, which has previously helped Pakistan manage its foreign exchange reserves and energy import costs.
Officials said Pakistan’s economic team is holding talks with Saudi investors on several potential projects aimed at expanding Saudi investment across key sectors of the economy.
Talks Focus on Economic Reforms and Long-Term Growth
According to sources, the discussions are intended to ease pressure on Pakistan’s balance of payments while reducing the burden of external debt repayments.
Saudi officials have also presented Pakistan’s economic team with a comprehensive framework outlining structural reforms, sustainable economic growth and long-term macroeconomic stability.
The proposed roadmap reportedly extends to 2035 and includes recommendations designed to strengthen Pakistan’s economy, improve fiscal management and enhance export performance.
Sources said the framework aims to help Pakistan address recurring balance of payments challenges while increasing the country’s exports to nearly $100 billion over the coming years.
The government is seeking to shift bilateral financial cooperation from temporary deposits toward long-term investment partnerships that support economic development, infrastructure and industrial growth. Discussions between the two countries are expected to continue as both sides work towards finalising mutually beneficial arrangements.
