Islamabad (Commerce Desk) – Following Saudi Arabia, China and Kuwait have also assured Pakistan of extending loans worth a combined $4.3 billion, which is expected to help meet the country's financial requirements.
According to sources, China's $4 billion loan and Kuwait's $300 million loan will be extended for one year. This brings the total expected extension of loans from Saudi Arabia, China and Kuwait to $7.3 billion.
Sources in the Ministry of Finance say that the extension of China's $4 billion loan will take place in March 2027, while arrangements will be made to retain loans from all three countries for approximately one year.
According to sources, Pakistan is also expected to receive $1.21 billion from the International Monetary Fund (IMF) in December. Total payments of $21 billion during the current fiscal year also include the extension of loans worth $7.3 billion.
It is worth mentioning that a day earlier, Finance Minister Senator Muhammad Aurangzeb told journalists at Parliament House that Saudi Arabia had extended its $3 billion loan, with its repayment deferred until an appropriate time.
According to the finance minister, positive discussions had taken place with the Saudi finance minister on this matter, and Pakistan had no reason to worry due to the friendly relations between the two countries. He said that Pakistan did not currently require further financial assistance from Saudi Arabia.
Muhammad Aurangzeb further stated that Pakistan had foreign exchange reserves equivalent to three months of imports. The country has to repay bonds worth approximately 1.5 billion euros every year, and the government's efforts are aimed at ensuring that any future government does not face financial difficulties regarding these payments.
He added that a meeting of the IMF Executive Board is expected in December, although its final date has not yet been decided.