Islamabad: Economic Affairs Division Plans $9 Billion Loans from China and Saudi Arabia

Islamabad: In Islamabad, the Economic Affairs Division (EAD) authorities have informed the National Assembly’s Standing Committee on Economic Affairs that Pakistan will receive loans exceeding $9 billion from China and Saudi Arabia in the fiscal year 2024-25.

According to a briefing given to the committee by EAD, efforts are underway to secure funding from the Arab Coordination Group and the Qatar Fund for Development for the Diamer Bhasha Dam project. The authorities have confirmed the approval of projects to obtain $9 billion loans from China and Saudi Arabia. Pakistan faces overall payments exceeding $20.8 billion in the current fiscal year.

EAD expects to receive $500 million from the Islamic Development Bank for oil and gas loans. However, Saudi Arabia is not currently facilitating another loan to Pakistan for oil.

The committee was briefed that the Geneva Donor Conference held in January 2023 promised project financing of $10.7 billion, out of which Pakistan received only $3 billion in loans instead of grants.

According to the briefing, Pakistan has the potential to receive $1 billion from the World Bank for the Dasu Hydropower Project by the current fiscal year, with the first phase expected to be completed by 2027.

EAD authorities have indicated a reduction in oversight procedures for all NGO projects nationwide but emphasized vigilance to prevent misuse of funding for counterterrorism purposes.