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Riyadh comes to rescue crisis-hit Pakistan once again

The IMF has asked Pakistan to arrange $6 billion in additional loans and at least half of those must be materialised before the board meeting….report Asian Lite News

Pakistan claimed that it received an indication from Saudi Arabia for additional loans that may help to break gridlock with the International Monetary Fund (IMF).

“We have received an indication from Saudi Arabia about getting something,” Dr Aisha Pasha, the Minister of State for Finance, said after attending a meeting of a parliamentary committee, without explaining the loan amount, The Express Tribune reported.

She also informed the Senate Standing Committee on Finance that some progress was made a day earlier on a friendly country deposit, saying, “we will soon reach the stage to sign the Staff-Level Agreement with the IMF”.

The IMF has asked Pakistan to arrange $6 billion in additional loans and at least half of those must be materialised before the board meeting.

The funds are needed to avoid sovereign default and also increasing the foreign exchange reserves to a level sufficient to back 1.7 months of imports, Express Tribune reported.

Pakistan had told the IMF that it would get $2 billion in additional loans from Saudi Arabia and $1 billion from the UAE to meet the additional financing requirements.

Hamad Obaid Ibrahim Salim Al-Zaabi, Ambassador of the UAE also called on Finance Minister Ishaq Dar.

Dar highlighted various avenues in which both countries could enhance their existing trade and investment relations.

Sources said the IMF wanted the $3 billion to be arranged from a combination of bilateral and commercial loans, The Express Tribune reported.

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