ISLAMABAD – Current projections suggest that with the policies outlined inPakistan’s memo, the financing needs for the next 12 months (the programperiod) will amount to $27.5 billion.
This was mentioned in the “First Review under the Extended Arrangementunder the Extended Fund Facility and Request for Modification ofPerformance Criteria”.
Pakistan has informed the IMF that in support of this program and itslong-term debt sustainability, the country has secured long-term financingfrom international partners.
To close this gap the authorities have secured financing commitments frombilateral and multilateral partners as follows:
– China $5.2 billion – Saudi Arabia $6.2 billion – UAE $1 billion – The World Bank $1.7 billion – The Asian Development Bank $2.5 billion – The Islamic Development Bank $1 billion.
ln line with program financing commitments, key bilateral creditors havemaintained their exposure to Pakistan by extending new financing includingChina with $700 million and Saudi Arabia with $3 billion, fully coveringtheir matured loans.
The authorities are engaged with external creditors to secure financingconsistent with the program’s debt sustainability objectives.
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The oil facility with Saudi Arabia (worth $3.2 billion) was activated inAugust and is providing support to maintain the balance of payments (BOP).Similarly, authorities have secured the roll-over of matured obligations toChina Development Bank in September ($700 million).
They have engaged with Saudi Arabia, which refinanced BOP support loansthat matured in November ($1 billion). Official lenders are also advancingtheir disbursement plans.
The ADB is planning to approve a new Special Policy-Based Loan of $1billion in December which will further strengthen the BOP.
The floor on net international reserves (NIR) will be adjusted upward(downward) by the cumulative excess (shortfall) of the actual stock of NIRat end-June 2019, relative to the projected amount. The stock of NIR of SBPat end-June 2019 is projected at negative $17,743 million.
