Skip to content Skip to Search
Skip navigation

Saudi and UAE commit to debt rollover for Pakistan

By Pramod Kumar
Pakistan finance minister Muhammad Aurangzeb. The IMF's $7bn extended fund facility may be approved next month Reuters/Fayaz Aziz
Pakistan finance minister Muhammad Aurangzeb. The IMF's $7bn extended fund facility may be approved next month

Saudi Arabia, the UAE and China have confirmed their debt rollover for one year to support Pakistan’s $7 billion bailout package with the International Monetary Fund (IMF), a media report said.

The rollover amount will be the same as last year, Bloomberg reported, quoting Pakistan’s finance minister Muhammad Aurangzeb.

Islamabad has $12 billion in bilateral loans, which have been extended for the past few years. 

Person, Electronics, Mobile Phone

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

The IMF has assessed an external financing gap of $3-5 billion, The News International, a Karachi-based English publication, reported, citing Aurangzeb.

Pakistan will have to fill this gap over 37 months to secure the IMF’s $7 billion extended fund facility (EFF), the minister said, adding that the government is working towards getting assurances for the additional amount.

The IMF may consider approving the EFF package by the end of August or early September.

In November 2023, the Saudi Fund for Development extended the period for its deposit of $3 billion to Pakistan for another year.

The UAE deposited $1 billion in Pakistan’s central bank, finance minister Ishaq Dar said in July 2023.

Aurangzeb said the government has appointed a consultant to launch the Panda bond, which is expected this year.

Panda bonds are securities denominated in yuan but issued by non-Chinese borrowers.

Last week, Fitch Ratings upgraded Pakistan’s credit rating to CCC+, following greater certainty regarding the continued availability of external funding.

Latest articles

Saudi hotel llicences. Hajj pilgrims from Indonesia at a hotel in Mecca. Pilgrimages form a large part of Saudi Arabia's tourism goals

Saudi Arabia scraps hotel licence fees to draw investment

Saudi Arabia has removed licensing fees for hotels and resorts in a further effort to increase tourism and improve the kingdom’s investment environment.  The Ministry of Tourism and Ministry of Municipalities and Housing said they would ask hotel establishments to reapply for operating licences online. The decision applies to hotels, hotel apartments and residential resorts.  […]

Opec secretary general Haitham Al Ghais. Analysts say the body is running out of options to stabilise oil prices

Opec+ delay to output rise fails to rejuvenate oil price

The decision by Opec+ on Thursday to postpone its oil output hike until December has failed to pump up the markets, where the sentiment remains bearish.  While Opec+ still holds sway over global balances, it is running out of options to stabilise prices, analysts said, as the share price of Aramco, the world’s biggest producer, […]

Traders at the Saudi stock exchange. Fourth Milling will not receive any proceeds from the IPO, which will be distributed to the selling shareholders

Fourth Milling to launch retail IPO next month

The two-day retail tranche of the Fourth Milling Company’s (MC4) initial public offering (IPO) will begin on October 2. The company will sell 162 million shares, or 30 percent of its share capital, on the Saudi stock exchange, it said in its prospectus. The price range announcement and institutional book building will commence on September […]

A woman at a supermarket in Cairo. Egypt's annual headline and core inflation fell for the fifth consecutive month

Egypt holds key policy rates steady as inflation eases

Egypt’s central bank left its key policy rates unchanged as inflation continued to subside amid softening growth. The lending and deposit rates were kept intact at 28.25 percent and 27.25 percent. Inflationary pressure has continued to subside with the gradual easing of previous shocks, the central bank said in a statement. Annual headline and core […]