ISLAMABAD: Pakistan has secured assurances for the rollover of $7.3 billion in loans from Saudi Arabia, China and Kuwait, easing pressure on its external financing position for the current fiscal year.
Finance Minister Muhammad Aurangzeb confirmed on Wednesday that Saudi Arabia had agreed to roll over its $3 billion loan. He shared the development while speaking to reporters at Parliament House.
Aurangzeb said both countries had discussed the Saudi loan and agreed to defer its repayment for an appropriate period. He also clarified that Pakistan did not currently need additional financial assistance from Saudi Arabia.
Meanwhile, China has assured Pakistan of rolling over $4 billion in loans. Kuwait has also agreed to extend a $300 million rollover, according to Finance Ministry sources.
The $4 billion Chinese loan will come up for rollover in March 2027. Meanwhile, the three countries are expected to extend their respective loans for approximately one year, the sources said.
With these arrangements, Pakistan expects to secure $7.3 billion in loan rollovers from the three countries to meet its external financing needs.
Separately, Aurangzeb said Pakistan expects to receive $1.21 billion from the International Monetary Fund (IMF) in December.
The expected IMF disbursement, along with the loan rollovers, will help the country manage its external payments and debt obligations.
Pakistan faces external payments of approximately $21 billion during the current fiscal year. The government expects the $7.3 billion in loan rollovers to cover part of these obligations.
