[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]ISLAMABAD: Saudi Arabia has conveyed to the International Monetary Fund its commitment to provide financing to Pakistan, according to State Minister for Finance Aisha Ghaus Pasha, a critical support to secure IMF funding.
Saudi Arabia’s pledge of $2 billion in external financing assistance to Pakistan is one of the final conditions for an IMF deal that Islamabad requires to avoid default.
“Apparently, Saudi Arabia has committed to the IMF, and the IMF has indicated that there has been correspondence,” Pasha told reporters in Islamabad.
Also Read: Pakistan assures US of its commitment to IMF deal
The IMF’s resident representative did not immediately respond to a request for comment from Reuters.
The IMF has requested that Pakistan obtain assurances on external financing from friendly countries and multilateral partners in order to fund its balance of payment gap for the current fiscal year, which ends in June.
Since early February, Islamabad has hosted an IMF mission to negotiate a series of policy measures to secure $1.1 billion in funding for the cash-strapped economy, which is on the verge of collapse.
The funds are part of a $6.5 billion bailout package approved by the IMF in 2019, which analysts believe is critical for Pakistan to avoid defaulting on external payment obligations.
Also Read: Pakistan waiting for a nod from Gulf states in order to unlock IMF loan
The agreement will also open up additional bilateral and multilateral financing channels for Pakistan, allowing it to shore up its foreign exchange reserves, which have fallen to four weeks’ worth of import cover, and help it avoid a balance of payment crisis.
Pasha also stated that Islamabad was in talks with the UAE to secure assurances for foreign exchange reserves deposits in the central bank.[/vc_column_text][/vc_column][/vc_row]
