The government claimed on Wednesday that Saudi Arabia has signalled providing additional loans to Pakistan that may help to break the deadlock with the International Monetary Fund (IMF), local media reported.
“Saudi Arabia has shown readiness to provide something”, Aisha Pasha the Minister of State for Finance said, without explaining the loan amount, after attending a meeting of a parliamentary committee.
She also apprised the Senate Standing Committee on Finance of the progress made a day earlier on a deposit by a friendly country, saying “We will soon reach the stage to sign the Staff-Level Agreement with the IMF.”
The global lender has asked Pakistan to arrange $6 billion in additional loans, demanding to materialise at least half of those before the board meeting. The funds are required to avoid sovereign default and also increase the foreign exchange reserves to a level sufficient to back 1.7 months of imports.
Pakistan had told the lender that it would secure $2 billion in additional loans from Saudi Arabia and $1 billion from the UAE to meet the requirements for additional financing.
Hamad Obaid Ibrahim Salim Al-Zaabi, Ambassador of the UAE also called on Finance Minister Ishaq Dar, who highlighted various sectors in which both countries could enhance their existing trade and investment ties, according to a finance ministry handout.
Sources said the fund wanted the $3 billion to be arranged from a combination of bilateral and commercial sources.
Responding to a question after the meeting, Dr Aisha said it was obvious that the foreign commercial banks will not lend to Pakistan until a staff-level agreement is finalised with the IMF.
The ninth review talks ended without a conclusion on February 9 and since then Pakistani authorities had been claiming to close the deal with the IMF “in few days”.
