New Delhi, April 15 -- Cash-trapped Pakistan had just started recovering from its spiralling economy; it successfully secured a bailout from the International Monetary Fund (IMF), and had managed to increase its total liquid foreign exchange reserves from $9.1 billion in 2022-23 to $21.7 billion in April 2026.

But then, the US-Iran war in the Middle East broke out, affecting oil and energy supplies to many countries worldwide - including Pakistan. Moreover, Pakistan's decision to repay $3.5 billion to the United Arab Emirates (UAE) loan this month put the country in a tough spot.

On Wednesday, Pakistan's "skewed" foreign reserves received a mega boost after Saudi Arabia pledged an additional $3 billion in deposits while extending its ex...