Pakistan has submitted eight major requests to Saudi Arabia under long-term economic cooperation, aiming to stabilize its finances amid rising economic pressures.

Key demands include converting $5 billion in short-term deposits with the State Bank of Pakistan (SBP) into a 10 year facility, increasing its oil facility on deferred payments from $1.2 billion to $5 billion with longer repayment terms, and securitizing $10 billion of diaspora remittances to strengthen foreign exchange reserves.

Officials said the requests come as Pakistan faces mounting financial challenges due to geopolitical tensions from the ongoing US-Israel-led conflict against Iran.

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The country is also negotiating with the IMF for completion of the third review under its $7 billion Extended Fund Facility (EFF).

Pakistan requested the oil facility be expanded so that each repayment tranche could be extended from one year to three years, easing immediate pressure on reserves.

The government also sought Saudi guarantees for Pakistan’s new international Sukuk issuance, concessional credit lines to the EXIM Bank of Pakistan, and a waiver of bank guarantee requirements for import-related transactions.

Other proposals include Saudi investment in Pakistan’s Public Investment Fund (PIF) and support for adjustments in primary surplus targets to allow proposed tax reforms under IMF guidance. Officials noted that while short-term fiscal pressures remain, these measures could improve long-term economic stability.

Responses from Saudi Arabia were not immediately available. Attempts to get comments from the Ministry of Finance and the State Bank of Pakistan received no reply by the time of reporting.