Pakistan seeks $23 billion in external financing for fiscal needs

The federal government of Pakistan is anticipating a need for $23 billion in external financing to address its monetary needs for the upcoming fiscal year. To achieve this, debts amounting to approximately $12 billion from friendly nations are planned to be refinanced. Notably, this includes $5 billion from Saudi Arabia, $3 billion from the UAE, and $4 billion from China. Moreover, the budget for the next year will incorporate fresh financing from China.

Furthermore, Pakistan is set to receive over $1 billion from the International Monetary Fund (IMF) as part of a new loan program. The government is also exploring the possibility of securing additional funding from the World Bank and Asian Development Bank, with the aim of finalizing new loan agreements before the IMF review mission visits the country.

Negotiations for the new loan program are slated to commence in mid-May, with a primary focus on meeting budgetary targets ahead of the IMF review. The finance ministry has directed ministries to achieve these targets before the negotiations begin, with detailed information to be shared with the IMF delegation upon target completion.

Prior to the arrival of the IMF review mission, the federal cabinet will sanction the budget strategy paper. The finance ministry has already initiated the budget preparation process, which will delineate objectives for debt repayment, defense expenditures, and tax collections. Additionally, development goals and ongoing budget priorities will be outlined.

The government of Pakistan is actively seeking external financing to address its fiscal requirements for the upcoming year. With plans to refinance debts from friendly nations and secure new loans from international financial institutions, Pakistan aims to meet its budgetary targets and ensure financial stability. The negotiations with the IMF and the budget strategy paper approval signify significant steps towards achieving economic sustainability and meeting the country's financial obligations.