Pakistan has requested Saudi Arabia to increase its lending by $1.5 billion to bridge the financing gap for the pending IMF package. The government has formed a committee led by Aurangzeb to negotiate with Chinese authorities and energy sector investors. Meanwhile, Pakistan is seeking to reprofile more than $27bn in debt and liabilities with friendly countries, including Saudi Arabia, China, and the UAE.
China has been requested to reprofile $15bn energy sector liabilities, aiming to convert imported coal-based projects to local coal for fiscal relief. Despite challenges, Saudi Arabia, China, and the UAE have shown support, with potentially Saudi Arabia providing an additional $1.5bn in bilateral commercial loans. IMF board approval is expected in September, as Pakistan targets $20bn in foreign borrowing for the current fiscal year.
Efforts are being made to secure additional funding to strengthen Pakistan’s reserves and economic stability, with discussions ongoing with commercial banks in the UAE. Financial support and strategic planning are vital to ensure approval and implementation of the economic bailout.
Published in Dawn, August 24th, 2024
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