Pakistan Secures Debt Rollovers Amid IMF Loan Programme

Pakistan has obtained commitments from China, Saudi Arabia, and the UAE to roll over debt for one year, which is crucial as it awaits approval of a $7 billion loan programme with the IMF. Finance Minister Muhammad Aurangzeb confirmed the volume of rollovers and discussed managing a $5 billion financing gap.

Pakistan has secured commitments from China, Saudi Arabia, and the United Arab Emirates to roll over debt for one year, providing a significant boost as the country awaits the final approval of a new $7 billion loan programme from the International Monetary Fund (IMF), Bloomberg reported on Tuesday.

Pakistan's Finance Minister Muhammad Aurangzeb revealed after a parliamentary committee meeting in Islamabad that the volume of rollovers would match last year's figures. He mentioned that Pakistan holds $12 billion in bilateral loans extended over the past few years.

Pakistan and the IMF reached an agreement in July for a 37-month loan programme. The country, frequently on the brink of sovereign default, has often relied on IMF programmes and external finances from nations like the UAE and Saudi Arabia. Aurangzeb stated that Pakistan expects to manage a financing gap of up to $5 billion during the fund's three-year plan.

(With inputs from agencies.)