Pakistan requested an additional loan of 1.5 billion dollars from Saudi Arabia

Pakistan requested an additional loan of 1.5 billion dollars from Saudi Arabia

Pakistan has requested a loan increase from Saudi Arabia to cover the external financing gap required for the International Monetary Fund (IMF) bailout package.

According to a report by Dawn newspaper, Pakistan has reportedly requested Saudi Arabia to increase its debt of $1.5 billion in its existing $5 billion portfolio, to help reduce the required external financial gap to achieve a 37-month bailout package for the International Monetary Fund. The package is pending till the approval of the Executive Board of the IMF. Informed sources said that according to the prevailing procedure, the three friendly bilateral partners, Saudi Arabia, United Arab Emirates and China, have to confirm the rollover of their $12 billion loan to Pakistan through their executive directors. Apart from this, the government has issued a notification for the formation of the committee chaired by the finance minister, which will include Energy Minister Oasis Leg bark and Federal Minister Ali Pros Malik among others, who will be asked by the Chinese economic advisory firm from the Chinese authorities and energy sector investors and sponsors. Will continue the negotiations. The government formally confirmed last month that the federal government has started the process of retrofiring loans and liabilities of more than 27 billion dollars with three friendly countries, while retrofiring or 12 billion dollar rollover is actually a condition set by the IMF under the expansion fund facility.

While Islamabad has requested Beijing to reproduce loans of more than 15 billion dollars in the energy sector and convert imported coal a based projects into local coal, to create financial scope in view of difficulties in timely payments, which will help in the energy sector in the energy sector. Foreign exchange exit and consumer tariff should be facilitated. Currently, Saudi Arabia has 5 billion dollars, China has 4 billion dollars and the United Arab Emirates has 3 billion dollars to provide Pakistan, while Pakistan has requested another 1.5 billion dollars from Saudi Arabia, which will come in the form of bilateral trade loans. Expected, while it can also be in the form of a safety deposit. Sources said that Saudi Finance Minister Mohammad all Jada an has assured his counterpart of additional support, but the 'process' was taking time to confirm the IMF's executive board. In the 37-month loan program, the IMF has set up a plan regarding the needs of Pakistan's annual foreign exchange, while Finance Minister Muhammad Aurangzeb hopes for an early extension due to his relations with the counterparts of China, Saudi Arabia and the United Arab Emirates, while with assurances, the finance minister came in the last week of August. The MF was in touch with the board, so that it could be temporarily revised by September. While on July 28, the Finance Minister said on his return from China that the counterparts of the three friendly countries assured Pakistan of helping to reach a very positive position in terms of external economic differences. It should be noted that on July 27, Finance Minister Muhammad Aurangzeb met the Governor of the Central Bank of China, Pin Gong Spent, and discussed bilateral financial cooperation. The finance minister arrived in Beijing on Thursday to discuss the reforms proposed by the International Monetary Fund (IMF) as well as debt relief for the power sector. Stakeholders are concerned about the outcome of the negotiations, which may affect the results of foreign investment and stabilization of exchange rates if they do not go as they wish. The senior banker, who closely monitors the situation, said that we are confident that China will not completely reject Pakistan's request to reschedule the loans of the energy sector, but the final results do not appear to be very positive. He said that China was initially reluctant to discuss the issue, which has delayed the visit, and this indicates its disagreement with Pakistan over the debts ridden talks with Pakistan.