Pakistan seeks $11 billion aid from China, Saudi Arabia to keep IMF bailout programme on track: Report

Pakistan is seeking around $11 billion from China and Saudi Arabia as part of efforts to fill external- and domestic resource gaps so that the International Monetary Fund bailout programme remains on track to ensure economic stability until an elected government is formed in the country, according to a media report.

Cash-strapped Pakistan is seeking around $11 billion from China and Saudi Arabia as part of efforts to fill external- and domestic resource gaps so that the International Monetary Fund (IMF) bailout programme remains on track to ensure economic stability until an elected government is formed in the country, according to a media report on September 29.

It comes amid the caretaker government's push for expanding the tax net effectively to retail, agricultural and real estate sectors while continuing a crackdown on illegal currency movements.

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The Dawn newspaper reported that this information was part of a detailed policy statement issued by caretaker Finance Minister Shamshad Akhtar before the Senate Standing Committee on Finance and Revenue, presided over by Senator Saleem Mandviwalla in Islamabad on September 28.

She said the government was currently working on an economic revival plan that would be presented to the caretaker Prime Minister Anwar ul Haq Kakar soon and shared with the Senate Standing Committee on Finance.

She said the caretaker government had a limited scope to undertake deep-rooted structural reforms but promised to deliver on reforms that were part of the IMF programme to ensure the disbursement of a $700 million loan instalment. Talks with the IMF would begin by the end of October on this.

The IMF reached a staff-level agreement with Pakistan on a nine-month Stand-by Arrangement (SBA) of about $3 billion in June. The Finance Minister said it was the government’s priority to deliver on the IMF programme to ensure economic stability and continuity.