Pakistan is now in talks with Saudi Arabia and China for over $3.5 billion as it prepares to repay a little over $3 billion to the United Arab Emirates, Bloomberg reported.
Negotiations are underway for a mix of deposits, loans and investments to boost forex reserves once the repayment is made. The total assistance under discussion is more than $3.5 billion.
ProPakistani reported earlier that the UAE had demanded its money back years after depositing it at the State Back of Pakistan in 2018. Those deposits were part of an emergency support extended during a balance-of-payments crisis.
Over the past few years, many Gulf countries have repeatedly provided short-term deposits to help Pakistan meet International Monetary Fund conditions and avoid default risks.
The Finance Division is now working to replace the outgoing UAE funds with fresh inflows so that reserves remain stable and market confidence is preserved.
China is expected to play an important role in rollover financing, while Saudi Arabia is also considering expanded economic cooperation and investment support.
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