Pakistan Plans to Secure \$25 Billion in Loans for Upcoming Fiscal Year, Refinancing with Friendly Nations in the Pipeline
The federal government has projected a foreign loan requirement of over \$25 billion for the next fiscal year, which includes refinancing of existing loans and securing new ones. As part of this financial strategy, the government has also prepared a plan to refinance loans with Saudi Arabia, China, and other friendly countries.
According to sources, the government is aiming to secure more than \$25 billion in foreign loans for the upcoming fiscal year. This amount includes both the refinancing of previous loans and the acquisition of new loans.
Sources further indicated that a significant portion of this amount, approximately \$12 billion, will be rolled over from existing loans with countries like Saudi Arabia, China, the United Arab Emirates (UAE), and other friendly nations. This move will allow the extension of loan repayment periods.
Additionally, a requirement of \$4.6 billion for project financing is expected, with the World Bank, the Asian Development Bank, and other international financial institutions potentially playing a key role in providing the funds.
Among the refinancing plans, the government is also looking to refinance a \$3.2 billion loan taken from Chinese commercial banks. Furthermore, discussions are ongoing about acquiring a new \$1 billion commercial loan from China.
The government is also planning to secure \$2 billion in loan installments from the International Monetary Fund (IMF), and another \$2 billion may be obtained from Saudi Arabia in the form of deferred payments for oil supplies and other related matters.
Sources also revealed that the responsibility for refinancing Safe Deposits with the UAE will fall under the State Bank of Pakistan, while the Ministry of Finance will manage the loan installments under the IMF’s Extended Fund Facility (EFF) program.
The Economic Affairs Division will be responsible for securing financing of up to \$19.5 to \$20 billion in total.
