Hope for cash-strapped Pakistan as China and Saudi Arabia are expected to roll over $9 billion in loans to Asian nation for fiscal year 2024-25 as the country is witnessing economic revival.
Economic Affairs Division (EAD) informed National Assembly Standing Committee on Economic Affairs that Islamabad will get a roll over $9 billion in loans from China and Saudi Arabia, as the country faces total repayments exceeding $20.8 billion this fiscal year.
Economic Affairs Division further anticipates receiving $500 million from Islamic Development Bank for oil and commodity loans. Kingdom of Saudi Arabia is however unwilling to provide another oil loan facility to brotherly nation.
The committee was also informed about the Geneva Donor Conference held in January 2023, which pledged $10.7 billion in project financing. So far, Pakistan has received only $3 billion, primarily in the form of debt rather than grants.
Despite the odds, Pakistan is likely to receive $1 billion from the World Bank for the Dasu Hydropower Project this fiscal year, with the first phase expected to be completed by 2027 while Asian Infrastructure Investment Bank has been awarded the construction contract for the N5 project.
EAD officials emphasised absence of a nationwide monitoring mechanism for all NGO projects but assured that funding is closely monitored to prevent misuse for terror financing.
The committee further requested more detailed information on projects experiencing delays in external financing for the next meeting.
Debt-stricken Pakistan needs another IMF loan to repay over $27billion in 2024
