The IMF (International Monetary Fund) is looking to gauge Saudia Arabia’s commitment to fund Pakistan before the global shylock layout fresh funds to South Asian nation, as per sources.
Further it has been reported that it is assured by the IMF that Saudia Arabia will fund atleast $4 billion so that Islamabad doesn’t have the funding gap after IMF loan.
It would includes special drawing rights, as per sources.
It is crucial matter as the IMF needs to lend Pakistan $1.2 billion, it would not be sufficient for Prime Minister, Shehbaz Sharif’s to avoid debt default, confirmed by sources.
As per reports, in the next 12 months Pakistan needs atleast $41 billion for debt repayment and to uplift foreign exchange reserve.
Further it added that IMF’s board may not approve release of cash if there’s a risk of default.
Prior to July 14, IMF and Pakistan had a staff level agreement for the release of US $1.17 billion under the review of 7th and 8th combined of Pakistan Extended Fund Facility (EFF)
Further as per agreement it needs to be approved by IMF’s Executive Board.
Further it has been confirmed that IMF board will consider an extension of EFF till June 2023 in order to support implementation of program and to meet the higher financing needs in the year 2023 and to fulfill additional financing.
Moreover the access of SDR 720 million will bring the total of about US$ 7 billion under EFF.
