The government is reportedly looking into other options to meet its needs for outside cash, including speaking with Mashreq Bank and Dubai Islamic Bank.
The CEO of Dubai Islamic Bank and Minister of Finance Muhammad Aurangzeb met virtually to talk about investment prospects, according to sources.
To meet its needs for outside funding, Pakistan is looking to banks in the Gulf to provide $4 billion in commercial loans. There are $26.4 billion in debt repayments that are due in the current fiscal year, which presents significant issues for the nation in terms of external finance. Moreover, Pakistan wants to repay $12 billion in loans from Saudi Arabia and China.
This is a good time to point out that Pakistan and the IMF signed a $7 billion, three-year aid package agreement on July 13.
As per the statement, Pakistan should be able to establish stronger, more inclusive, and resilient growth and consolidate macroeconomic stability with the help of the new program, which is subject to approval by the Fund’s Executive Board.
The IMF’s executive board must approve the agreement.
Nathan Porter, the head of the Fund’s mission to Pakistan, was quoted in the IMF statement as saying, “The program aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers, and remove economic distortions to spur private sector-led growth.”
