IMF deal: Pakistan confident of securing required external loans

ISLAMABAD: Pakistan is confident it will meet a key International Monetary Fund (IMF) condition by securing timely loans and rollovers from friendly countries, official sources said on Thursday.

According to the Ministry of Finance, the government expects $12 billion in deposits from allied nations to be rolled over without delay. Saudi Arabia, China, and the United Arab Emirates have assured Pakistan of their full support. Currently, Saudi Arabia has $5 billion in deposits with Pakistan, the UAE has $3 billion, and China holds $4 billion in safe deposits.

Out of the $26 billion in external debt due this fiscal year, Pakistan has already cleared $3.5 billion, which includes $1.5 billion in cash repayments and $2 billion through loan rollovers. The finance ministry confirmed that the remaining payments will also be made on time.

Officials stressed that, in line with the IMF program, all loans from friendly countries will be rolled over. They also confirmed that Pakistan has arranged the $500 million Eurobond repayment due on September 30, adding that this will not put extra pressure on the country’s foreign reserves.

The ministry stated that the financing gap will be covered through the continued support of partner nations.

Meanwhile, Prime Minister Shehbaz Sharif has directed officials to negotiate maximum relief during the ongoing IMF review talks, especially in light of the floods and heavy rains that have caused significant challenges.

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