September 9, 2023
Finance Pakistan

Saudi Arabia Signals It Could Provide Pakistan an $11 Billion Lifeline

The backing from Saudi Arabia could reinforce Pakistan’s hand in intervening a restart to a slowed bailout from IMF. Islamabad has so far been reluctant to decide to the IMF’s words for a bargain, which comprise putting forward electricity and gasoline costs and boosting surcharges.

The United Arab Emirates and Qatar in current months have said they might also propose assistance to Pakistan, with probable loans and acquisitions from Gulf countries now amounting to at least $22 billion after the delinquent statement from Riyadh. Gulf governments have said they could extend a similar level of support to Egypt, which is also toiling economically.  

Pakistan has only around $4.5 billion in official foreign-currency reserves, financial analysts estimate. In January and February this year it is due to repay debt of $6.4 billion, according to figures from the central bank. By December, it must repay a further $12.8 billion, according to the central bank.

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