Current projections suggest that with the policies outlined in Pakistan’s memo, the financing needs for the next 12 months (the program period) will amount to $27.5 billion.
This was mentioned in the “First Review under the Extended Arrangement under the Extended Fund Facility and Request for Modification of Performance Criteria”.
Pakistan has informed the IMF that in support of this program and its long-term debt sustainability, the country has secured long-term financing from international partners.
To close this gap the authorities have secured financing commitments from bilateral and multilateral partners as follows:
- China $5.2 billion
- Saudi Arabia $6.2 billion
- UAE $1 billion
- The World Bank $1.7 billion
- The Asian Development Bank $2.5 billion
- The Islamic Development Bank $1 billion.
ln line with program financing commitments, key bilateral creditors have maintained their exposure to Pakistan by extending new financing including China with $700 million and Saudi Arabia with $3 billion, fully covering their matured loans.
The authorities are engaged with external creditors to secure financing consistent with the program’s debt sustainability objectives. The oil facility with Saudi Arabia (worth $3.2 billion) was activated in August and is providing support to maintain the balance of payments (BOP). Similarly, authorities have secured the roll-over of matured obligations to China Development Bank in September ($700 million).
They have engaged with Saudi Arabia, which refinanced BOP support loans that matured in November ($1 billion). Official lenders are also advancing their disbursement plans. The ADB is planning to approve a new Special Policy-Based Loan of $1 billion in December which will further strengthen the BOP.
The floor on net international reserves (NIR) will be adjusted upward (downward) by the cumulative excess (shortfall) of the actual stock of NIR at end-June 2019, relative to the projected amount. The stock of NIR of SBP at end-June 2019 is projected at negative $17,743 million.