Pakistan seeks additional financial support from Saudi Arabia

Prime Minister Shehbaz Sharif, during his visit to Saudi Arabia, will discuss the rollover of $3 billion in deposits and additional financial support with Saudi Arabian authorities.

Pakistan urgently requires rapid financial assistance from friendly nations like Saudi Arabia and China, as well as from the International Monetary Fund to avoid a balance-of-payments catastrophe.

The prime minister is currently in Saudi Arabia along with the rest of his delegation, which includes Finance Minister Ishaq Dar.

He will also discuss the continuance of the oil facility on a payment plan with the Saudi authorities and the realization of a $10–$12 billion prospective investment for the development of the petrochemical complex at Gwadar Port.

PM Shehbaz also intends to travel to China next month again. Pakistan owes China $23 billion in bilateral debt, of which it would ask for the rollover of SAFE deposits and commercial loans totalling $6.3 billion, as well as further assistance to meet the current fiscal year’s urgent needs for external funding.

The PM will initiate the second phase of the China-Pakistan Economic Corridor (CPEC) and ask China for further funding in order to develop industrial, agricultural, and other forms of cooperation.

Pakistan’s external funding needs for the current fiscal year are between $32 to $34 billion.

PM Shehbaz and the Asian Development Bank (ADB) inked a loan deal for $1.5 billion prior to leaving for Saudi Arabia on Monday. It is expected that the funds will be disbursed this week.

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