Pakistan has received confirmation from Saudi Arabia, China, and the UAE for a one-year rollover of $12 billion in deposits, contrary to its request for a three to five-year extension. This rollover will help Pakistan to get approval for the $7 billion International Monetary Fund (IMF) programme.
The News reported that Finance Minister Mohammad Aurangzeb disclosed that the IMF has assessed an external financing gap of $3-5 billion, which Pakistan needs to fulfil over 37 months to secure a $7 billion bailout package under the Extended Fund Facility (EFF).
After the meeting of the meeting of the Senate Standing Committee on Finance, the finance minister told journalists that the IMF Executive Board might consider approving the $7 billion EFF package by the end of August 2024 or early September.
The Senate Standing Committee on Finance, chaired by Saleem Mandviwalla, met to discuss various financial matters on Tuesday. They requested an in-camera briefing from Chairman FBR Amjad Zubair Tiwana on the placement of senior FBR officers in the administrative pool.
Minister Aurangzeb further stated that the assurances from the three bilateral partners for the one-year rollover of $12 billion deposits are crucial for obtaining the next EFF package from the IMF. He also mentioned ongoing efforts to secure additional assurances of $3-5 billion to move towards completing the IMF programme.
Pakistan seeks an extension of the repayment tenure for Chinese IPPs, amounting to $9 billion, over three to five years. International commercial banks have shown interest in Pakistan but are awaiting favourable pricing and the IMF’s approval of the bailout package, as well as improvements from credit rating agencies.
