As per sources from the finance minister, Saudi Arabia has approved funding worth $2 billion for Pakistan to ease its economic conditions. The sources also claimed that the finance minister, Ishaq Dar, will also approach the leadership of the UAE to secure further financing before his visit to the US to attend the annual spring meetings of the IMF and the World Bank Group.
Will the Funding Worth $2 Billion Help Pakistan Secure the IMF Deal?
It’s already been made public that IMF put a condition that it would need assurances about funding from friendly countries before it can proceed with Pakistan’s bailout. But still, the funding worth $2 billion is not supposed to help Pakistan as the global lender has reservations about the Rs900 billion subsidies that the government wants to continue.
The IMF has also insisted on collecting Rs850 billion in petroleum levies and wants the government to take measures to cover up its tax shortfall for the current fiscal year. The fund also wants the government to cut down on oil imports to reduce its import bill.
Asking For More Loans From Friendly Countries is Embarrassing: PM Shehbaz
Earlier, PM Shehbaz said that it was embarrassing for him to seek more loans from friendly countries. He said that seeking foreign loans was not the right solution to address Pakistan’s economic challenges as the loans would have to be eventually returned. Pakistan’s economic situation is facing severe headwinds because of the political crisis and plummeting rupee.
Read more: IMF Deal: PM Shehbaz Forewarns of More Burden on the Masses
