Pakistan has asked Saudi Arabian authorities for a $1.2 billion Saudi oil facility (SOF) for the upcoming 12 months in an effort to close the $2–2.5 billion financing deficit highlighted by the International Monetary Fund (IMF) for the current fiscal year.
The media reports claimed on Thursday that there was no mention of the issue in a handout from the finance ministry.
Under the $7 billion Extended Fund Facility (EFF), a staff-level agreement was signed with the IMF; however, it is yet to be presented to the Fund’s Executive Board for loan approval.
In the meanwhile, the Saudi Arabian government intends to invest in two phases to acquire a 15% interest in the Reko Diq project; however, no deal in this respect has been completed as of yet.
A loan of $400 to $500 million has also been proposed for the ITFC facility of the Islamic Development Bank. Also, a $1 billion loan request has also been made to Standard Chartered Bank (SCB) and the Gulf commercial banks.
In addition to providing the extra $2.5 billion in funding, Pakistan is requesting that three bilateral creditors transfer $12 billion in deposits held by the State Bank of Pakistan.
In order to achieve the $26.2 billion overall obligations for the current fiscal year, the nation also has to restructure $4 billion in commercial debt during this fiscal year.
Federal Minister for Finance and Revenue Muhammad Aurangzeb reaffirmed Pakistan’s commitment to a domestic economic plan focusing on extensive institutional changes across major economic sectors, according to an official statement released by the finance ministry.
