Prime Minister Shehbaz Sharif’s visit to Saudi Arabia has marked the anticipated revival of the Saudi Oil Facility, set to begin monthly disbursements of $100 million in March 2025. The $1.2 billion initiative will extend over 12 months, concluding in February 2026, offering critical support to Pakistan's economy.

To date, Pakistan has secured $1 billion through the IMF’s Extended Fund Facility, although these funds remain unreflected in the Economic Affairs Division (EAD) data. For the 2024-25 fiscal year, the government projects $19.4 billion in foreign loans. This figure includes $5 billion from Saudi Arabia and $4 billion from China. However, Islamabad must secure an additional $4.4 billion within the remaining four months (March to June 2025) to meet its annual target.

According to EAD reports, $2.49 billion in foreign inflows were obtained from multilateral creditors during the first eight months, against the full-year target of $4.57 billion. Notably, China stands out as a key financial ally with $306 million in guaranteed loans, while the Asian Development Bank and the Asian Infrastructure Investment Bank contributed $1.09 billion and $60.25 million, respectively. The World Bank added $860.3 million under its IBRD and IDA programs.

Meanwhile, bilateral creditors disbursed $334.96 million, with France leading at $103.23 million, followed by China at $99.17 million. Other contributions came from nations like Germany, Japan, Korea, and Kuwait. The government has yet to release international bonds, initially slated to raise $1 billion, while $500 million of the expected $3.779 billion in foreign commercial loans has been secured.

Despite these challenges, the resumed Saudi Oil Facility represents a vital financial lifeline, reinforcing Pakistan’s foreign exchange reserves while easing fiscal pressures. This development underscores the importance of international collaboration in addressing Pakistan’s economic priorities.