China and Saudi Arabia expected to rollover $9bn debt

Author: Agencies

Pakistan is anticipating to secure a rollover of $9 billion in debt from China and Saudi Arabia for the fiscal year 2024-25. In addition, Pakistan is seeking funding for the Diamer-Bhasha Dam project.

Sources from the Ministry of Economic Affairs indicate that Pakistan expects a $500 million facility from the Islamic Development Bank for oil and commodities. However, there is no expectation of an extension for the existing oil credit facility from Saudi Arabia. The ministry sources also revealed that Pakistan faces over $20.8 billion in payments this year.

The Geneva Donor Conference in 2023 had promised $10.7 billion, but only $3 billion has been received so far. Pakistan is also working to secure funding based on commitments made at donor conferences. Furthermore, Pakistan anticipates a $1 billion loan from the World Bank for the Dasu Hydropower Project. The Asian Infrastructure Investment Bank is expected to provide financing for the N-5 project.

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