Pakistan 'confident' of meeting IMF condition of external loans

ISLAMABAD: Pakistan is set to fulfil a key International Monetary Fund (IMF) condition by securing timely loans and rollovers from friendly countries, ARY News reported, official sources confirmed on Thursday.

According to the Ministry of Finance sources, the government is optimistic about the rollover of $12 billion in deposits from allied nations. Saudi Arabia, China, and the United Arab Emirates have assured Pakistan of rolling over their loans on time.

Currently, Saudi Arabia holds $5 billion in time deposits within Pakistan’s foreign exchange reserves, while the UAE has placed $3 billion and China maintains $4 billion in safe deposits.

Out of the $26 billion external debt due in the current fiscal year, Pakistan has already repaid $3.5 billion, which includes $1.5 billion in cash payments and $2 billion in rollovers, sources said.

The Ministry of Finance added that the timely repayment of the remaining obligations will also be ensured.

Officials asserted that, in line with the IMF program requirements, all loans from friendly countries will be rolled over.

Furthermore, Pakistan has arranged for the payment of a $500 million Eurobond due on September 30. Sources clarified that this repayment will not put additional pressure on the country’s foreign reserves.

The financing gap is expected to be bridged through continued support from partner nations, the ministry assured.

Meanwhile, the Pakistan government has also initiated efforts to secure maximum relief during the ongoing review talks with the International Monetary Fund (IMF), sources told ARY News.

As per details, Prime Minister Shehbaz Sharif has directed the authorities to negotiate broader concessions amid floods and heavy rains during the upcoming review talks with IMF, sources said.