In ongoing discussions at the technical level between Pakistan and theInternational Monetary Fund (IMF), Pakistan has decided to seek supportfrom friendly nations, including Saudi Arabia, to bridge the substantialexternal financing gap.
According to sources within the Finance Ministry, Pakistan is currentlygrappling with a significant financing shortfall amounting to $6.5 billion.
The interim government has made the strategic decision to approach friendlynations such as Saudi Arabia and the United Arab Emirates for assistance.
Additionally, support will be sought from financial institutions like theIslamic Development Bank, the Asian Development Bank (ADB), and the WorldBank.
The government has presented its external financing plan to theInternational Monetary Fund (IMF), with efforts focused on narrowing thefiscal gap through a reduction in the current account deficit.
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In the initial three months, the deficit stood at $947 million, contrastingsharply with the annual target of $6 billion.
According to Express News, the caretaker government anticipates that thecurrent account deficit will decrease to $4.5 billion from the initialtarget of $6 billion.
In response to the IMF’s recommendations for reducing the externalfinancing gap, the government is exploring options such as acceleratedprivatization and contemplating the issuance of bonds in the global bondmarket.