Pakistan has formally requested Saudi Arabia to convert $5 billion in short-term deposits into a 10-year long-term facility while expanding its oil financing from $1.2 billion to $5 billion on deferred payment terms. The move is intended to strengthen economic cooperation and provide long-term financial stability amid ongoing economic pressures and IMF negotiations.
In addition, Islamabad proposed securitizing up to $10 billion in remittances, obtaining Saudi guarantees for potential international Sukuk issuances, and establishing concessional credit lines to support export-led growth. Officials noted that these measures could bolster foreign exchange reserves and reduce dependence on expensive external borrowing.
The government also asked Saudi authorities to support fiscal discussions under the IMF program, including adjustments to primary surplus targets, waiving bank guarantee requirements for select import transactions, and exploring potential investments through Saudi Arabia’s Public Investment Fund. These steps aim to stabilize Pakistan’s economy and support sustainable long-term growth.
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