Pakistan is actively negotiating with Saudi Arabia and China to secure financial support exceeding $3.5 billion. This move comes as the nation prepares to repay a $3 billion loan to the United Arab Emirates by the end of April 2026, according to sources familiar with the discussions.
The discussions involve potential loans and investments, as Pakistan faces a significant strain on its foreign exchange reserves, currently standing at approximately $16 billion, which is sufficient to cover just three months of imports. The failure to extend the debt repayment with the UAE for the first time in seven years has intensified this financial pressure.
Saudi Arabia’s Finance Minister, Mohammed Al-Jadaan, visited Islamabad on April 10, 2026, for talks with Pakistani officials, just before the country hosted critical peace negotiations between the US and Iran. During this meeting, Pakistan’s Prime Minister Shehbaz Sharif emphasized the importance of expanding cooperation with Saudi Arabia, particularly in trade and economic development.
The relationship between Saudi Arabia and Pakistan has grown stronger, marked by increased economic and security ties, even as relations between Saudi Arabia and the UAE have become strained. Recently, Pakistan sent fighter jets to Saudi Arabia under a mutual defense agreement to bolster regional security.
While the UAE has not publicly disclosed the reasons for demanding the loan repayment, Pakistan’s Ministry of Foreign Affairs has downplayed media speculation, labeling the event as a ‘routine financial transaction.’ A source indicated that the UAE had proposed a shorter rollover period, which Pakistan declined.
Pakistan also maintains close economic ties with China, its largest creditor, owing over $25 billion. Efforts are underway to advance the China-Pakistan Economic Corridor as part of Beijing’s Belt and Road Initiative, following the successful completion of its initial phase.
Additionally, Pakistan reached a preliminary agreement with the International Monetary Fund (IMF) last month for a $1.2 billion loan installment from a $7 billion funding program. This marks one of many bailouts from the IMF since the 1960s.
Published in SouthAsianDesk, April 14, 2026
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