Saudi Arabia has agreed to provide Pakistan $3 billion for a year to address the cash-strapped country's balance-of-payments crisis, after Imran Khan met Saudi King Salman in Riyadh, according to a media report.

The cash-rich Gulf kingdom has also signed an agreement to provide $3 billion worth of oil to Pakistan on deferred payment, DawnNews reported.

The development came as Pakistan Prime Minister Khan called on Saudi King Salman on the sidelines of the high-profile Future Investment Initiative forum in Riyadh. Both leaders expressed their desire to further strengthen bilateral cooperation.

They also discussed issues of mutual interest, trade, investment and economic ties, the Pakistan PM Office said in a press release in Islamabad.

Khan noted that Pakistan would probably need loans from both friendly governments and the International Monetary Fund to meet its financial obligations.