ISLAMABAD: In the next couple of days, Saudi Arabia will announce one-year extension in its $3 billion deposits with the State Bank of Pakistan.
Saudi Arabia will also resume supply of $100 million worth of petroleum products to Pakistan on deferred payment arrangement.
According to media reports, the Kingdom of Saudi Arabia’s financial support will enable Pakistan to fulfill the last requirement of the IMF for the resumption of stalled loan.
The board of IMF is scheduled to meet on Aug 29 to consider for approval $1.17 billion two tranches for Pakistan under the seventh and eighth review of economy.
In March 2022, IMF suspended its loan facility for Pakistan when then Prime Minister Imran Khan capped oil and electricity prices, breaching the agreement signed with the IMF in 2019.
The coalition government, nonetheless, has completed all harsh conditions of the IMF to ensure resumption of loan which will prove a gateway for foreign financing for Pakistan. In 2022-23, Pakistan government needs $35 billion foreign loans _ $21 billion for repayment of external loans and remaining for meeting the current account deficit requirements.
All in all, the coalition government has saved Pakistan from facing default by fulfilling all requirements of the IMF to resume loan.