Saudi Arabia continues to be a significant source of affordable foreign loans for Pakistan, offering an annual interest rate of just 4%. According to official records, Pakistan has secured two separate cash deposit facilities from Saudi Arabia in recent years, each carrying this favorable interest rate. Initially contracted for one-year terms, these loans have been rolled over annually without additional costs, providing Pakistan with much-needed financial reliefThe affordability of Saudi loans stands in contrast to other financing options available to Pakistan. For instance, loans from China are approximately one-third more expensive, and foreign commercial borrowing costs are more than double the rate offered by Saudi Arabia. Together with similar commitments from China and the United Arab Emirates, these loans constitute a significant portion of Pakistan’s foreign reserves.