Muslim Nuclear Giant in Trouble Again, King Salman Provides Rp 51 Trillion Aid
The Saudi Arabian government has officially committed to providing financial aid worth US$3 billion, or approximately Rp 51 trillion, to Pakistan. This announcement was made directly by Pakistan’s Finance Minister, Muhammad Aurangzeb, amid the South Asian nation’s intense efforts to stabilise its national economy.
Aurangzeb announced that the disbursement of the aid is expected to take place next week.
The statement was delivered by Aurangzeb while he was in Washington attending the 2026 World Bank-IMF Spring Meetings. This step is crucial given that Pakistan is facing a major deadline for repaying its substantial foreign obligations in the near future.
Meanwhile, Pakistan’s Prime Minister Shehbaz Sharif departed for Saudi Arabia on Wednesday (15/4/2026) for an official state visit.
The aid from Riyadh arrives just as Islamabad prepares to repay a debt of US$3.5 billion, or approximately Rp 59.5 trillion, to the United Arab Emirates (UAE) this month. Previously, the newspaper Dawn reported that Abu Dhabi is demanding immediate repayment of the loan provided to Islamabad as part of the UAE’s extended external funding support since 2019.
The aid was initially channelled through the Abu Dhabi Development Fund to help Islamabad address its choking balance of payments crisis.
The report indicates that the UAE debt has been extended multiple times, but the latest extension has a shorter duration, signalling Abu Dhabi’s dissatisfaction with the arrangement. This exacerbates Pakistan’s already battered fiscal position, which has been hit by a series of consecutive crises in recent years.
In 2024, Pakistan faced a debt crisis stemming from Covid-related lockdowns, supply disruptions triggered by the Ukraine conflict, and devastating floods that destroyed a third of the country.
The International Monetary Fund (IMF) eventually intervened with a US$7 billion (equivalent to Rp 119 trillion) bailout package over three years. Under the IMF agreement, Pakistan is required to secure around US$12.5 billion (Rp 212.5 trillion) in debt rollovers from China, Saudi Arabia, and the UAE to meet external financing needs and maintain its foreign exchange reserves.
The Dawn report suggests that the UAE’s position as a donor is likely to be replaced by Qatar in the future.
Relations between Pakistan and the UAE have been tense over the past year. While Islamabad has signed a defence pact with Riyadh, Abu Dhabi has moved to build closer security partnerships with New Delhi, India.
The UAE, which has long been a vital source of foreign remittances for Islamabad, also imposed visa restrictions affecting Pakistani nationals earlier this year, further clouding diplomatic ties between the two countries.