Pakistan plans to request an extension of a $12 billion loan from friendly nations to cover external financing for the FY2024-25, as revealed by sources within the finance ministry.
To meet the financial requirements of the upcoming fiscal year, estimated at Rs23 billion, Islamabad is considering seeking an extension of loans from allies such as Saudi Arabia, the United Arab Emirates, and China. Sources indicate that rollovers for a $5 billion loan from Saudi Arabia, a $4 billion loan from China, and a $3 billion loan from the United Arab Emirates are being pursued.
Additionally, the budget allocation includes provisions for new financing from entities like the World Bank and the Asian Development Bank.
Earlier reports revealed that the Pakistani government aims to finalize budget targets for FY2024-25 prior to the arrival of an International Monetary Fund (IMF) mission in Islamabad on May 15. The mission will engage in discussions regarding a new loan program sought by Pakistan to address its financial requirements.
Preparations for budget targets have been expedited by the government, with the Ministry of Finance instructing relevant ministries to swiftly complete their respective targets.
