Pakistan has decided to take a loan of $ 12 billion from key allies like China in the financial year 2024-25 to meet its budget target. The IMF team is expected to arrive in the cash-strapped country. Talks for a new loan program with the global lender are expected to begin in mid-May ahead of the budget due in June.
In order to close a $23 billion gap in its external financing, Pakistan has decided to seek a rollover of approximately $12 billion in debt from important allies like China in the 2024–25 fiscal year. This move is part of the federal government’s efforts to meet budgetary targets ahead of the anticipated arrival of an IMF team in the cash-strapped nation. Insiders in the Finance Ministry said that $5 billion from Saudi Arabia, $3 billion from the United Arab Emirates, and $4 billion from China will be carried over. They also added that the budget for the upcoming fiscal year would incorporate an estimate of additional new financing from China. This information was reported by The Express Tribune newspaper.
Help will be sought from many countries including Saudi Arabia
According to sources in the Finance Ministry, $ 5 billion will be taken from Saudi Arabia, $ 3 billion from the United Arab Emirates (UAE) and $ 4 billion from China. Also, an estimate of more new financing from China in the next financial year will also be included.
Pakistan has high hopes from IMF
The estimates also include fresh money from the World Bank and the Asian Development Bank. Under the terms of the new loan program, Pakistan would receive around USD 1 billion from the International Monetary Fund (IMF).
