Today: 6 October 2025
15 November 2024
3 mins read

Pakistan turns to Saudi, China to bridge $5b funding gap 

The Pakistani government has reassured the IMF that it remains optimistic about receiving support from China’s Exim Bank…reports Asian Lite News

Pakistan is relying on assurances from Saudi Arabia and China to address a USD 5 billion external financing gap, with hopes of securing a debt rescheduling agreement with China and deferred oil payments from Saudi Arabia, despite initial delays, the Express Tribune reported on Thursday. 

These efforts are part of Pakistan’s broader strategy to meet external funding requirements and fulfil conditions under a USD 7 billion bailout package with the International Monetary Fund (IMF). 

The Pakistani government has reassured the IMF that it remains optimistic about receiving support from China’s Exim Bank, which has committed to rolling over USD 3.4 billion in project debt, and from Saudi Arabia, which has agreed to provide a USD 1.2 billion oil facility, as reported by the Express Tribune. These assurances were given by the executive directors of China and Saudi Arabia when the IMF board approved the bailout package. 

Pakistan has also requested the IMF delegation to reconsider its requirement for significant changes to the Pakistan Sovereign Wealth Fund (PSWF) law by the end of December. While the IMF has yet to respond, the government has hired Alvarez & Marsal Sovereign Advisory Services, led by former central bank governor Dr. Reza Baqir, to advocate for its position. 

In a briefing to the IMF on Wednesday, Pakistan reiterated its commitment to securing the necessary external financing, which will fill the USD 5 billion gap between 2024 and 2027, the Express Tribune reported, citing sources. Out of this, USD 2.5 billion is needed for the current fiscal year. 

Pakistan had initially planned to raise USD 3.2 billion, including the USD 1.2 billion Saudi oil facility. However, each month of delay in finalising this facility reduces available funds by USD 100 million in the fiscal year. 

On the Chinese front, Pakistan is seeking the rescheduling of approximately USD 3.4 billion in debt, with USD 750 million due within the next year. A significant portion of the Chinese debt, around USD 2.7 billion, is scheduled to mature between October 2025 and September 2027, as reported by the Express Tribune. 

Pakistan Finance Minister Muhammad Aurangzeb, currently attending COP 29 meetings, will join the IMF discussions on Friday. During the IMF meeting, Pakistani authorities and Alvarez & Marsal briefed the IMF on the need for adjustments to the PSWF Act. The government has committed to amending the law by December to align it with IMF requirements, but it has also proposed that the IMF should not push for drastic changes. Specifically, Pakistan suggests that the sovereign wealth fund should not be treated as a state-owned enterprise, as originally envisioned by the IMF. 

In response to IMF concerns, Pakistan has agreed to make several changes to the PSWF Act, including the omission of Section 50, which would have allowed for the sale of state-owned entities to foreign buyers. The law now requires amendments in several areas related to governance, revenue management, public asset management, and the handling of state-owned enterprises (SOEs), the Express Tribune reported. The government has agreed to bring the fund in line with international standards, including prohibiting the direct sale of assets to foreign countries. 

Pakistan is also committed to removing special privileges for the sovereign wealth fund that would have allowed it to acquire state-owned enterprises or participate in their privatisation. If the IMF’s proposed amendments are passed by parliament, all such privileges will be rescinded. (ANI) 

ALSO READ: India Rallies Support for Flood-Hit Nigeria

Previous Story

Modi slams Uddhav, says ‘Balasaheb insulted’

Next Story

India’s Sports Future Looks Bright 

Latest from -Top News

Piyush Goyal Heads to Doha for Trade Talks

During the visit, both sides are expected to discuss the proposed India–Qatar Free Trade Agreement (FTA)….reports Asian Lite News Union Commerce and Industry Minister Piyush Goyal will travel to Doha, Qatar, on

Hamas Heads to Egypt for Gaza Talks

The negotiation will focus on the details of enacting the first phase of the plan…reports Asian Lite News A delegation from the Palestinian group Hamas arrived in Egypt on Sunday ahead of

Multi-alignment, upgraded

With US ties strained and China tense, New Delhi taps Europe’s harder edge for co-development, clean tech and strategic autonomy, writes Manoj Menon India is recalibrating its great-power hedging as frictions with

GAZA: Egypt to Host Peace Talks

Egypt hopes the discussions will help “end the war and the suffering of the brotherly Palestinian people, which has continued for two consecutive years…reports Asian Lite News Egypt will host Israeli and

Tommy Robinson to Visit Israel

The invitation comes from Amichai Chikli, Israel’s minister for the diaspora and combating antisemitism, who described Robinson as a “courageous leader on the front line against radical Islam…reports Asian Lite News An
Go toTop

Don't Miss

Pakistan President Faces Mounting Pressure to Announce General Election Date

Alvi became the centre of controversy after he wrote letters

Enforced disappearances a ‘stain on Pakistan’: Pak HC

Justice Minallah gave these remarks during an exchange with Attorney