In a monthly disbursement report published by the Ministry of Economic Affairs, it has been reported that the government had a tough time securing the $9 billion in debt rollovers it needed last month, managing to get just $426 million from international lenders in July. It should be noted that in order to get $7 billion loan from the International Monetary Fund (IMF), it is important to have debt rollovers of about $12 billion collectively from Saudi Arabia, China and United Arab Emirates (UAE).
It constitutes $5 billion debt rollovers from Saudi Arabia, $4 billion debt rollovers from China and $3 billion debt rollovers from UAE. However, in the case of UAE, it is pertinent to mention here that the decision of debt rollover for Pakistan would be taken on the basis of central bank’s balance sheet. And the report suggests that no disbursements against these loans have been made last month which has made the situation difficult for government.
It should be noted that the $7 billion IMF deal has been scheduled to start from Aug 30 but now, the plan has been delayed as the government is unable to secure the necessary debt rollovers worth $12 billion, which was the prerequisite for having this IMF package.
An interesting detail to mention here is that the recent and approaching Saudi deal with Pakistan regarding Reko Diq’s 15% shares will grant Pakistan an opportunity to rollover $5 billion debt from Saudi Arabia. Besides this, the deal will also provide Pakistan an opportunity to approve a $1.2 billion oil financing facility.
Moreover, regarding the rescheduling of a new IMF package, the finance minister, Muhammad Aurangzeb, told the media last week that it might approve in September, though no specific date has been disclosed by him. It should be noted that if there would be any further delay even after September in securing IMF package and having debt rollovers, then it would create financial difficulties for the government.
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