Pakistan Turns to China and Saudi Arabia for $11 Billion Lifeline to Secure Economic Stability
Pakistan seeks $11 billion in funding from China and Saudi Arabia to fill resource gaps and ensure economic stability until a new government is formed. Talks with the IMF are also scheduled.
Pakistan, in an effort to fill external and domestic resource gaps and ensure economic stability until a new government is formed, is seeking around $11 billion from China and Saudi Arabia, according to a recent media report. The caretaker finance minister, Dr. Shamshad Akhtar, stated that the government is working on an economic revival plan that will be presented soon and shared with the Senate standing committee on finance.
The caretaker government has limited scope for deep-rooted structural reforms but promises to deliver on reforms required by the International Monetary Fund (IMF) to secure a $700 million loan installment. Talks with the IMF are scheduled to begin at the end of October. It is crucial for Pakistan to fulfill its commitments under the IMF program for the sake of economic continuity.
Pakistan's financing needs exceed the available funding, but the government hopes to attract project pipeline disbursements and policy-based financing from multiple international bodies. However, the finance minister also noted that rising international commodity prices, especially Brent crude oil, pose a significant risk to Pakistan's external stability.