Pakistan's Finance Minister expects financing from Middle East
Pakistan's finance chief revealed plans for the government
to seek financing from Middle Eastern commercial banks in the aftermath of
securing a new long-term bailout loan from the International Monetary Fund
(IMF). The announcement came amidst a visit by an IMF team to Pakistan for a
four-day review under a $3 billion short-term loan program initiated last
summer.
Having reportedly met all structural benchmarks and targets
set by the IMF, the finance ministry anticipates the release of the remaining
tranche of approximately $1.1 billion upon successful completion of the
performance evaluation. Furthermore, Pakistan has expressed interest in
securing a new loan under the Extended Fund Facility (EFF), aiming to implement
structural reforms to fortify its debt-laden economy.
UAE
to lend $1bln, roll over further $2bln to Islamabad
Finance Minister Muhammad Aurangzeb outlined plans to
approach Middle Eastern banks post-conclusion of the Extended Fund Facility,
citing their commercial borrowing capabilities. He expressed optimism about
securing funding and support from these banks, particularly to aid
trade-related activities.
Aurangzeb also anticipated improvements in Pakistan's credit
ratings following the EFF agreement with the IMF, facilitating easier access to
funds from the bond market.
IMF
forecasts ongoing need for substantial loans and grants in Pakistan
In the past, Pakistan has received financial assistance from
countries such as Saudi Arabia and the United Arab Emirates, which deposited
significant sums in its central bank and engaged in multiple rollovers.
Additionally, these countries provided oil on deferred payment terms and
extended direct financial aid to stabilize Pakistan's economy and bolster its
foreign exchange reserves.
Source: Arab News