Finance Minister Muhammad Aurangzeb announced that China, Saudi Arabia, and the UAE have responded positively to Pakistan’s financing needs for the approval of a $7 billion IMF programme. The government and IMF reached a loan agreement in July, pending approval from the IMF executive board and confirmation of financing assurances from Pakistan’s partners.
Aurangzeb has been in discussions with Saudi Arabia, the UAE, and China to fulfill gross financing needs under the IMF programme, including seeking energy sector debt reprofiling in China. Progress is being made, with board approval for the loan programme expected in September.
Positive talks with commercial banks, including Dubai Islamic and Al-Mashreq Bank, indicate support due to improved country ratings. External financing of $3 billion over 37 months is needed, with $2 billion for this year.
In addressing tax collection, Aurangzeb expressed the government’s commitment to collecting taxes from traders to fund business facilities. Despite delays in IMF board approval, he remains confident in the programme’s success.
The positive responses from key allies and financial institutions signal a positive outlook for Pakistan’s economic future.
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