IMF Receives Confirmation of $2 Billion Saudi Financing for Pakistan

Pakistan has inched closer to a bailout from the International Monetary Fund (IMF) after Saudi Arabia assured the global lender that it will provide financing of $2 billion to Pakistan.

Minister of State for Finance and Revenue Aisha Ghaus Pasha told reporters in Islamabad today that the IMF has received the assurance from Riyadh. According to the minister, the agreement with the IMF is still contingent on a similar promise from the United Arab Emirates for the financing of $1 billion.

The IMF is also evaluating the country’s proposed fuel discount for lower income groups by raising fuel prices for wealthy motorists, she said, adding that the lender was requesting so many details on the plan.

Pasha last week acknowledged the difficulties faced by the country but added that the present government had restored the IMF program. The lender wants no leaf unturned and the government has complied with everything thrown its way.

Pakistan is experiencing one of its worst economic crises in history, with interest rates reaching an all-time high this week after consumer prices accelerated to a new high. The World Bank reduced its growth forecast for the country to 0.4 percent from 2 percent previously, citing a dollar shortage that has caused supply chain disruptions and companies to cease production.