Pakistan secures $9 billion loans from China and Saudi Arabia

Pakistan is on the brink of a significant financial boost with China and Saudi Arabia poised to extend $9 billion in loans to the country for the fiscal year 2024-25. This injection of funds comes at a crucial time as Pakistan faces total repayments exceeding $20.8 billion this fiscal year. Additionally, the Islamic Development Bank is expected to provide $500 million for oil and commodity loans, further aiding Pakistan's economic stability.

While Saudi Arabia has opted out of offering another oil loan facility, the recent Geneva Donor Conference held in January 2023 pledged $10.7 billion in project financing for Pakistan. However, only $3 billion has been received thus far, primarily in the form of debt rather than grants.

Despite these financial challenges, Pakistan is set to secure $1 billion from the World Bank for the Dasu Hydropower Project in the current fiscal year. The first phase of this project is scheduled for completion by 2027. Additionally, the Asian Infrastructure Investment Bank has been entrusted with the construction of the N5 project, further boosting Pakistan's infrastructure development.

The Economic Affairs Division has acknowledged the absence of a comprehensive monitoring system for all NGO projects but has assured that funding is rigorously supervised to prevent any misuse for terror financing. The committee overseeing economic affairs has requested detailed information on projects experiencing delays in external financing for their upcoming meeting, demonstrating a commitment to transparency and accountability.

The financial support from China, Saudi Arabia, and international organizations, coupled with ongoing infrastructure projects, signals a positive trajectory for Pakistan's economy. With careful monitoring and strategic investments, Pakistan is poised to navigate its current economic challenges and pave the way for sustainable growth and development in the years to come.