Pakistan 'seeks' $4bln from gulf countries for IMF approval

ISLAMABAD: Pakistan is seeking $4 billion from banks in Gulf countries to meet its external financing needs for IMF bailout approval, ARY News reported citing sources.

According to sources, the government is exploring alternative sources to meet its external financing needs including talks with Dubai Islamic Bank and Mashreq Bank to secure the funding.

Sources revealed that Minister of Finance Muhammad Aurangzeb held an online meeting with the CEO of Dubai Islamic Bank to discuss investment opportunities.

Pakistan is seeking to secure $4 billion in commercial loans from Gulf countries’ banks to meet its external financing needs. The country is facing major external financing challenges, with a total of $26.4 billion in debt repayments due in the current financial year. Pakistan is also seeking to roll over $12 billion in loans from China and Saudi Arabia.

READ: Pakistan secures $7bn aid deal with IMF

Earlier, On July 13, Pakistan and the International Monetary Fund reached a three-year, $7 billion aid package deal.

The new programme, which needs to be validated by the Fund’s Executive Board, should enable Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth,” according to a statement.

The agreement is subject to approval by the IMF’s executive board.

“The programme aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers and remove economic distortions to spur private sector-led growth,” the IMF statement said, quoting Nathan Porter, the Fund’s mission chief to Pakistan.