Pakistan is likely to receive an additional $4 billion oil facility from Saudi Arabia, which would increase the total facility to $5 billion, sources revealed, it was reported on Monday.
According to the sources, Saudi Arabia is currently providing Pakistan with a monthly oil facility worth $100 million, while the total estimated provision for the ongoing fiscal year stands at around $1 billion.
The expected additional support is seen as a major boost for Pakistan’s external financing needs.
Meanwhile, Pakistan is also expected to receive a tranche of $1.21 billion from the International Monetary Fund next month, following approval from its executive board after a staff-level agreement between both sides.
Sources further said that the suspension of LNG imports could reduce the country’s import bill by approximately $250 million per month, providing additional relief to the economy.
Well-placed sources in the Ministry of Finance indicated that Pakistan is planning to enter capital markets this year by issuing bonds, including Panda bonds in the Chinese market, while the option of borrowing from commercial banks also remains under consideration.
Additionally, Pakistan is expected to make payments of around $5 billion this month to the United Arab Emirates (UAE) and through Eurobonds.
Currently, Pakistan holds about $12 billion in deposits from friendly countries, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.
The country’s total foreign exchange reserves stand at $21.79 billion, with reserves held by the State Bank of Pakistan amounting to $16.38 billion.
This marks a significant improvement compared to last year, when total reserves were $14.76 billion and central bank reserves stood at $10.27 billion.
