International Monetary Fund (IMF) has received Saudi Arabia’s commitment to providing Pakistan with financing, Minister of State for Finance and Revenue Dr. Aisha Ghaus Pasha has said.
IMF funding pledges from friendly nations are the last obstacle to clearing before Pakistan can secure the agreement it needs to avoid default, Minister for Finance and Revenue Senator Ishaq Dar has said.
Prime Minister Shehbaz Sharif also has said that before releasing bailout funds, the IMF wanted friendly countries’ foreign financing obligations to be met.
The country’s central bank reserves are at dangerously low levels—barely enough for four weeks’ worth of imports—so the IMF tranche is crucial because it will open up other foreign funding options and prevent Pakistan from defaulting on its debts.
Ayesha Ghaus Pasha said, “IMF has informed us that they have gotten correspondence from Saudi Arabia regarding the financial pledge.”
“Our situation has improved, and talks with the UAE are also ongoing,” she said, adding that before things with the IMF move forward, Pakistan would need a comparable promise from the Emirates as well.
Who will pay back the said amounts?