Pakistan Awaits IMF Verdict as $7 Billion Loan Program Hangs in Balance

Islamabad is bracing for a crucial month as the International Monetary Fund (IMF) Executive Board convenes to decide on the disbursement of a $7 billion loan program. According to sources, the finance ministry is optimistic about securing the much-needed funds in September. Meanwhile, Pakistan is scrambling to roll over a staggering $12 billion debt from China, Saudi Arabia, and the UAE. In a bid to plug the $2 billion financing gap, Islamabad has applied for an additional $1.2 billion loan from Saudi Arabia. The country’s debt obligations are mounting, with $5 billion owed to Saudi Arabia, $4 billion to China, and $3 billion to the UAE in cash deposits. Furthermore, Pakistan’s commercial debt stands at a whopping $4.5 billion, including a significant chunk owed to China.