Pakistan's Strategic Financial Maneuvers: Securing IMF Support amid Global Aid Assurances

Pakistan seeks to bridge a USD 5 billion external funding gap with IMF's support, leveraging deferred oil payments from Saudi Arabia and Chinese debt rescheduling. Despite delays, assurances from China and Saudi executives bolster optimism. Amendments to the Pakistan Sovereign Wealth Fund law face IMF scrutiny.

Amid economic turbulence, Pakistan seeks to secure a USD 5 billion external funding gap, banking on assurances from China and Saudi Arabia. Hopes are high following executive commitments made to the IMF during the approval of a hefty USD 7 billion bailout package.

With tentative rescheduling of Chinese debt and deferred oil payments from Saudi Arabia, the IMF assesses reverting to a quarter-year review. However, Pakistani officials assert no definitive resolution on this matter has emerged.

As the IMF mission visited unprompted, Pakistan requested leniency on amending the Pakistan Sovereign Wealth Fund law. Despite optimism, the IMF remains hesitant as Pakistan aims to shore up finances with pending external support and essential legislative changes.

(With inputs from agencies.)