Pakistan Eyes Rollover of $12 Billion Debts from Friendly Nations for 2024-25

To secure necessary funds for the fiscal year 2024-25, the federal government of Pakistan is making preliminary estimates of $23 billion in external financing, with plans to rollover debts worth around $12 billion from friendly nations.

Insiders within the finance ministry revealed that debts amounting to $5 billion from Saudi Arabia, $3 billion from the UAE, and $4 billion from China are slated for rollover. Additionally, new financing agreements with China are anticipated to be included in the upcoming financial year’s budget.

Apart from friendly nations, Pakistan is set to receive over $1 billion from the International Monetary Fund (IMF) as part of a fresh loan program. The budget estimates also account for new financing from institutions like the World Bank and Asian Development Bank.

Negotiations for a new IMF loan program are scheduled to commence in mid-May, prompting the government to aim for achieving budget targets before the anticipated arrival of the IMF review mission in Pakistan. Ministries have been directed to finalize targets ahead of negotiations, with plans to present comprehensive details to the IMF delegation upon completion.

To ensure transparency and preparedness, the federal cabinet is expected to approve the budget strategy paper before the IMF review mission’s arrival. The finance ministry has already initiated preparations for the budget, with a focus on setting targets for debt repayment, defense spending, tax collections, and development initiatives.