Pakistan Bailout Package Delayed

The updated schedule of the IMF executive board was made public this week, and listed its meetings till September 4, without including Pakistan. The news would come as a blow to the finance ministry as officials there seemed confident the IMF board would approve Pakistan’s bailout package worth $7bn.

In return, the government is working with all guns blazing to roll over $12 billion worth of loans from strategic partners like China, Saudi Arabia, and the United Arab Emirates. Pakistan has reportedly asked Saudi Arabia for another loan of $1.2 billion to cover a $2 billion financing gap.

At the moment, Pakistan has $5 billion of cash deposits from Saudi Arabia, $4 billion from China, and $3 billion from the UAE. Finance ministry officials also explained that the country has to bear a $4.5 billion commercial debt burden, largely owed to China.

The development has taken place as the IMF excluded Pakistan from its schedule, casting further uncertainty on the nation’s effort to stabilize its economy amid raging financial struggles.