China, Saudi Arabia, and the United Arab Emirates reportedly declined Pakistan’s request for debt rollovers last month, leaving the government unable to secure $9 billion in rollovers. Instead, Pakistan received only $426 million from international lenders in July, according to a report by The Express Tribune, citing the Ministry of Economic Affairs’ monthly data.
The rollover of cash deposits from China, Saudi Arabia, and the UAE, along with the acquisition of new loans from foreign commercial banks, is a prerequisite for the International Monetary Fund’s (IMF) approval of a $7 billion bailout package.
The Ministry of Economic Affairs had planned to roll over $5 billion in Saudi Arabian debt and $4 billion in Chinese debt. The $3 billion UAE deposit is reflected on the central bank’s balance sheet.
The report highlighted that no disbursements were made against these loans in July.
Meanwhile, Jameel Ahmad, Governor of the State Bank of Pakistan, announced on Tuesday that Pakistan aims to raise up to $4 billion from Middle Eastern commercial banks by the next fiscal year.
In his first interview since taking office in 2022, Ahmad disclosed that the country is in “advanced stages” of securing an additional $2 billion in external financing, which is crucial for the IMF’s approval of the $7 billion bailout program.
