ISLAMABAD: Pakistan is expected to secure an expanded oil financing arrangement from Saudi Arabia, with an additional $4 billion facility likely to be approved, bringing the total support to around $5 billion, according to media reports citing official sources.
At present, Saudi Arabia is providing Pakistan with deferred oil payments worth approximately $100 million per month, translating to nearly $1 billion over the current fiscal year. The anticipated increase is expected to significantly ease pressure on Pakistan’s external account.
In parallel, the country is also awaiting the release of a $1.21 billion tranche from the International Monetary Fund (IMF), which is likely to be disbursed next month following approval by its executive board after a staff-level agreement.
Officials noted that a temporary halt in LNG imports could further reduce Pakistan’s import bill by roughly $250 million per month, offering additional breathing space to the economy.
Sources within the Finance Ministry revealed that Pakistan is preparing to re-enter international capital markets through bond issuances. Plans include launching Panda bonds in the Chinese market, while borrowing from commercial banks is also being evaluated as part of a broader financing strategy.
