OpEd- Pakistan to yet again knock at the doors of friendly countries
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In ongoing discussions at the technical level between Pakistan and the International Monetary Fund (IMF), Pakistan has decided to seek support from friendly nations, including Saudi Arabia, to bridge the substantial external financing gap.
According to sources within the Finance Ministry, Pakistan is currently grappling with a significant financing shortfall amounting to $6.5 billion.
The interim government has made the strategic decision to approach friendly nations such as Saudi Arabia and the United Arab Emirates for assistance.
Additionally, support will be sought from financial institutions like the Islamic Development Bank, the Asian Development Bank (ADB), and the World Bank.
The government has presented its external financing plan to the International Monetary Fund (IMF), with efforts focused on narrowing the fiscal gap through a reduction in the current account deficit.
In the initial three months, the deficit stood at $947 million, contrasting sharply with the annual target of $6 billion.
According to Express News, the caretaker government anticipates that the current account deficit will decrease to $4.5 billion from the initial target of $6 billion.
In response to the IMF’s recommendations for reducing the external financing gap, the government is exploring options such as accelerated privatization and contemplating the issuance of bonds in the global bond market.
