Pakistan and Saudi Arabia will soon begin talks on the possible rollover of $3 billion deposits, additional financial support, the continuation of the oil facility on deferred payment, and the construction of the Petrochemical Complex in Gwadar.
Prime Minister Shehbaz Sharif, Finance Minister Ishaq Dar, and other government officials are in Saudi Arabia to discuss the aforementioned proposals with the nation in need of immediate financial assistance to avert a balance-of-payments crisis, according to a national daily.
Pakistani authorities are also deliberating requests for the Kingdom’s aid to be used for budgetary support during the current fiscal year. Later, the delegation will meet with the Saudi Development Fund (SDF) which is also scheduled to send a team to Pakistan next month to finalize long-term investment in the construction of an Aramco oil refinery unit in Gwadar.
After the Saudi visit, PM Shehbaz is expected to visit China next month. Pakistan owes China $23 billion in bilateral debt and wants a $6.3 billion rollover of the SAFE deposits and commercial loans, including additional assistance in meeting looming external funding needs for the current fiscal year.
Since July, the cash-strapped South Asian nation has managed $2.23 billion in external dollar inflows. The Asian Development Bank (ADB) signed a $1.5 billion loan agreement with Pakistan on Monday and the money is expected to be disbursed this week.
On the IMF front, Pakistan and IMF high-ups have agreed to keep the upcoming review talks short so that official data can be shared and IMF questions can be answered by Pakistani high-ups.
