ISLAMABAD: As Pakistan is going to initiate discussions with the IMF, the government has made a formal request to Saudi Arabia for the supply of oil on a deferred payment.
The Pakistan government has demanded $1 billion Saudi oil in 2024 on delayed payment.
The government has requested Saudi Arabia to initiate the supply of oil from Jan 2024.
Both sides are working out modalities for this oil facility.
This facility is a part of the financing plan established with the IMF by the Pakistani authorities, as a component of the $3 billion Standby Arrangement (SBA). The existing facility is set to expire in December of this year.
To date, Pakistan has received $300 million during the last three months of the current fiscal year, spanning from July to September.
Under the current SOF, KSA had disbursed a total of $700 million from March to September 2023, with hopes of an additional $300 million by the end of December 2023.
On another note, an anonymous official shared both positive and negative news regarding the Islamic Development Bank’s (IsDB) commitment of $3.3 billion under the ITFC mechanism. Initially, the bank was expected to provide $1 billion during the current fiscal year.
However, recent indications suggest that the IsDB may reduce this amount to around $250–500 million in syndicated loan facilities for the ongoing fiscal year.
A final decision from the IsDB is expected to be reached during its upcoming board meeting, scheduled for December 2023. Reasons cited for this decision include challenges in procuring dollar loans from international financial institutions due to high global interest rates.
In parallel, preparations are underway at the Ministry of Finance for the forthcoming talks with the IMF, which are anticipated to take place in the first ten days of November.
The finance secretary has called for a significant meeting of all relevant ministries, divisions, and departments to assess progress on the structural benchmarks, indicative criteria, and performance criteria agreed upon with the IMF, aimed at concluding in September 2023.
