Khan is visiting the Kingdom on the invitation of King Salman bin Abdulaziz and Crown Prince His Royal Highness Mohammad Bin Salman, a statement released by the Foreign Office said.
Khan, accompanied by Foreign Minister Shah Mehmood Qureshi, Finance Minister Asad Umar, Information Minister Fawad Chaudhry and Adviser for Commerce Abdul Razak Dawood, is also scheduled to perform Umrah during his two-day stay in Saudi Arabia.
Pakistan and Saudi Arabia are set to discuss many important bilateral, regional and worldwide issues during the visit.
Khan has also said he would pursue closer ties with Saudi Arabia's arch-rival Iran. "I assure you that we have to meet our target of 30 billion rupees every year and we will meet more than our target as all Pakistanis have been mobilised today".
In his maiden speech to the nation, PM Khan emphasised the importance of cutting down on government expenditure.
In comments which may snowball into a major diplomatic row, former Army chief and MoS MEA VK Singh has said that Imran Khan is controlled by the Pakistan Army.
Mr Umar has said the International Monetary Fund, where Pakistan has already sought help a dozen times since the late 1980s, would be a "fallback option". He also talked about dialogue with Pakistan which is in the pipeline for a while now. He said that it has been an issue which is being discussed for a long time now but no progress has been made by India's neighbours.
The ties have anxious the Saudis, who may also ask for more Pakistani support for the Saudi-led coalition fighting in Yemen, he said.
Mr Khan swept to power on populist promises to end corruption and build an Islamic welfare state.
The sale of bulletproof luxury vehicles, helicopters and even eight buffalo drew hundreds of curious onlookers but few buyers to an "austerity-drive" auction held by the Pakistani government this week.