Pakistan seeks $5bn Saudi facility and higher oil credit support

Islamabad: Pakistan has formally asked Saudi Arabia to convert its existing $5 billion deposits into a 10-year facility and increase deferred oil credit from $1.2 billion to $5 billion. The request aims to strengthen foreign exchange reserves and ensure uninterrupted energy imports as global supply disruptions and regional tensions continue to pressure the economy. Officials believe extended financial support from Riyadh would help ease balance of payments stress, stabilize oil availability and provide breathing space for broader economic management. Analysts say the move could reduce short term external vulnerabilities and improve investor confidence if approved. The proposed support is also expected to help Pakistan manage rising import costs and protect energy security during a volatile regional period ahead this year.