Pakistan's government, led by the cricketer-turned-politician Khan, inherited a mountain of economic challenges when it came to power in July.
Saudi Arabia will provide $3 billion cash deposits to State Bank of Pakistan.
Long-time allies Islamabad and Riyadh signed the loan agreement as Pakistan's recently elected Prime Minister Imran Khan attended the high-profile global investment conference despite calls from Pakistani human rights activists to boycott the venue in protest of the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul. It showcases economic and investment opportunities in Saudi Arabia as it pursues Vision 2030 for diversifying its economy.
Qassemi also referred to Foreign Minister Mohammad Javad Zarif's visit to Islamabad past year, saying, "During the trip, several committees were set up on various topics, including border issues, in order to lay the ground for boosting the security of the common borders through bilateral cooperation". However, the diplomatic price that Islamabad will have to pay has generated skepticism. "If Khan doesn't take a stronger stand in favor of Saudi positions in the region, it is unlikely that his gesture of showing support amidst the Khashoggi affair alone will prove sufficient for Saudi Arabia", former Pakistan ambassador to the US Husain Haqqani said to Asia Times.
Gulf crisis is being spilled over to Pakistan. He said the state of the economy is so precarious that without entering into a "charter of economy" no individual political party could overcome the issues, especially when the country will have to go for an International Monetary Fund programme. An IMF mission is scheduled to visit Islamabad next month to discuss the terms and the size of the loan.
Pakistan had said that India was just looking for excuses to avoid holding talks before next year's Parliament elections.
Imran Khan criticized previous governments for heavy debt burden on the country.
The Gulf kingdom also pledged an additional loan worth up to $3bn in deferred payments for oil imports, Pakistan's foreign ministry said in a statement on Tuesday.
Spain's prime minister says his government will fulfill past arms sales contracts with Saudi Arabia despite his "dismay" over the "terrible murder" of journalist Jamal Khashoggi.