Syria, Saudi Arabia sign defence cooperation deal, agree $403m in loans

Finance Minister Muhammad Aurangzeb announced on Wednesday that Saudi Arabia has extended a $3 billion debt repayment for a reasonable period, despite not receiving the $10 billion US liquidity support facility it had hoped for. The minister stated that Pakistan's external position remains comfortable even without the US facility, and the country has three months of import cover with foreign exchange reserves at $21.5 billion.

Pakistan is planning to increase its import cover to four months by the end of the fiscal year. The minister explained that Pakistan did not need any further financial assistance from Saudi Arabia, which has already rolled over $5 billion of debt until December 2028. The country had requested the $10 billion facility in July, hoping for its approval by the end of September.

Aurangzeb mentioned that Pakistan would rely on Eurobond issuances, Panda bond issuances, and dollar-settled rupee-linked bonds if the US facility does not materialize. The Finance Minister also discussed Pakistan's debt profile, stating that the government is working to ensure there is no bunching of debt repayments in any given year. The IMF board is expected to approve two loan tranches worth $1.2 billion in December.