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Pakistan has secured commitments from China, Saudi Arabia and the United Arab Emirates to roll over debt for a year, a boost for the government as it awaits final approval of a new $7 billion loan programme with the International Monetary Fund (IMF), Bloomberg reported on Tuesday. Pakistan has a peculiar financial arran­gement with these three countries in the shape of commercial loans and SAFE deposits that are rolled over every year and form a major part of the IMF programme in terms of external financing needs. Pakistan has now requested the maturity period of these loans — $5bn from China, $4bn from Saudi Arabia, and $3bn from the UAE — to be extended to at least three years, offering greater predictability under the IMF programme.

Pakistan has secured significant financing assurances from China, Saudi Arabia, and the UAE as part of a new International Monetary Fund (IMF) loan agreement. The agreement goes beyond a $12 billion bilateral loan owed to Pakistan by Islamabad. The IMF Pakistan Mission Chief, Nathan Porter, declined to provide details of additional financing amounts committed by China, Saudi Arabia, and the UAE, but said these would come on top of the debt rollover. The IMF's Executive Board approved a new $7 billion, 37-month loan agreement for Pakistan, requiring "sound policies and reforms" to strengthen macroeconomic stability. The additional financing amounts would come on top of the debt rollover South Asia has received 22 IMF bailout programs since 1958, with UAE, China, and Saudi Arabia providing significant financing assurances. The crisis-ridden country has had 22 previous IMF bailout programs. #imf #missionChief #Asia #loan #ChinaUAESaudi

IMF raises concerns about Kenya's plan to secure a $1.5 billion loan from the UAE. IMF's communications director advises against the loan due to foreign exchange risks and debt distress. Kenya's National Treasury aims to secure the loan in phases to stay within borrowing limits.

Pakistan has secured debt rollover commitments from China, Saudi Arabia, and the UAE for a year, according to a Bloomberg report. This follows Pakistan’s staff-level agreement with the IMF for a new $7 billion loan program, which requires financing commitments from bilateral donors for final IMF board approval. Finance Minister Muhammad Aurangzeb announced that the rollovers amount would match last year’s and expressed optimism for IMF board approval by month’s end. The Bloomberg report highlighted Pakistan's $12 billion in bilateral loans extended over the past few years. Aurangzeb also mentioned efforts to manage a $5 billion financing gap during the IMF's three-year program, emphasizing Pakistan’s progress towards a stable currency. The IMF’s 37-month loan agreement with Pakistan is pending executive board approval and confirmation of necessary financing assurances from development and bilateral partners. #PAKISTAN #loan #debt #imf #uae #china #news

An estimated total external debt (find an estimate in the comment) of Pakistan was computed through reliable sources on march 2024. IMF standing was USD 7,740 million against the total external debt of USD 130,402 million. Still, IMF is dancing on the head of entire nation when it's only 6% of total external debt and 8% of public external debt. I wonder, in which direction our country is heading towards...

SBP Governor Jameel Ahmed reported that October remittances exceeded $3 billion, boosting foreign exchange reserves. The first-quarter FY25 remittances are up 39%, and reserves are projected to reach $13 billion by year-end, with an additional $500 million from the ADB expected this week. Despite this, Pakistan faces a $6.3 billion shortfall in debt servicing for FY25. The government is working to improve its debt profile by reducing reliance on short-term Treasury bills, which should lower interest payments, bringing the FY25 projection to Rs8.3–8.4 trillion.

Pakistan urgently requires a three to five-year extension on the maturity of $12 billion in debt from Saudi Arabia, China, and the UAE to gain approval from the IMF’s Executive Board for a new bailout package, Finance Minister Mohammad Aurangzeb announced on Sunday. After returning from China, Aurangzeb explained in a press conference that Pakistan is not seeking additional foreign loans but is asking for the re-profiling of existing debt. This includes $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE. He noted that the IMF has requested external financing assurances for the 37-month period under the $7 billion Extended Fund Facility (EFF). The funds, initially borrowed for a one-year term, have required extensions due to repayment difficulties. The current request aims to reschedule the debt for three to five years to alleviate uncertainty at the time of maturity. Out of the $12 billion, $5 billion has already matured as of July. Historically, these creditors have provided short-term extensions rather than longer terms. Additionally, the minister revealed that Pakistan has initiated the re-profiling of debt from Chinese Independent Power Producers (IPPs), totaling $15.4 billion due by 2036. A Chinese consultant will be engaged to assist in extending the debt maturity by five to eight years. #pakistan #billions #IMP #KSA

Finance Minister Mohammad Aurangzeb revealed on Sunday that Pakistan is seeking a three to five-year extension on $12 billion in existing debt from Saudi Arabia, China, and the UAE. This move is aimed at securing approval from the IMF’s Executive Board for a new bailout package. Aurangzeb, speaking after his return from China, clarified that Pakistan is not pursuing additional foreign loans but is requesting a restructuring of its current debt. The debt in question comprises $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE. He emphasized that the IMF requires external financing assurances for the 37-month period covered by the $7 billion Extended Fund Facility (EFF). The debt, originally borrowed for a one-year term, has faced extension requests due to repayment challenges. The current proposal seeks to reschedule this debt over three to five years to reduce maturity uncertainty. As of July, $5 billion of the total debt has already matured. Historically, these creditors have granted short-term extensions, but the current request is for a longer-term solution. Additionally, Pakistan is working on restructuring debt from Chinese Independent Power Producers (IPPs), totaling $15.4 billion due by 2036. A Chinese consultant will assist in negotiating an extension of this debt by five to eight years. #Pakistan #DebtRestructuring #IMF #SaudiArabia #China #UAE

1. Growth is anemic 2. Exports are stagnant 3. Country borrows large amounts, domestically and externally 4. I could be talking about many countries here, but at the moment, I am talking about #Pakistan, which has just received another bailout package from the International Monetary Fund. Worth $7 billion. This is its 25th package, a record among IMF borrowers. It is time Pakistan took some really hard decisions, or it will not be long before it will have to go back to the IMF for yet another package. Currently, the biggest decision it has to make is to restructure its debt (i.e., a debt default). Another country in #SouthAsia has done it recently: #SriLanka. No doubt, it will be difficult, as I explain in my first piece for Project Syndicate. “This path is hard and long. But the alternative is worse: a possible disorderly debt default, and continued trips to China, Saudi Arabia, the UAE, and the US seeking bailouts, would condemn Pakistan’s economy to years of slow and volatile growth, performing well below its potential.” https://bit.ly/PKDEBTRESTR Centre for Social and Economic Progress The Wilson Center United States Institute of Peace Trade Sentinel