Pakistan plans to borrow over 25bn dollars in next fiscal year
Business
There is a plan to acquire a new commercial loan of $1 billion from China
ISLAMABAD (Dunya News) – The federal government has planned to borrow over $25 billion, including the rollover of debt of $12 by friendly countries, in the upcoming fiscal year 2025-26.
Sources said $12 billion in loans would be rolled over by friendly countries including Saudi Arabia, China, the UAE, and others.
An estimated $4.6 billion loan is expected to be secured for project financing in the next fiscal year, while $3.2 billion would be refinanced from Chinese commercial loans.
The sources further stated that there is a plan to acquire a new commercial loan of $1 billion from China. Additionally, $2 billion are expected to be received from the International Monetary Fund (IMF) under the loan programme.
A deferred payment facility, including the Saudi oil facility and others, is estimated at $2 billion.
Sources added that project financing will include contributions from the World Bank, the Asian Development Bank, and other financial institutions.
The responsibility of rolling over the UAE’s safe deposit will lie with the State Bank of Pakistan (SBP), the sources said.
The responsibility for IMF’s EFF loan installments will rest with the Ministry of Finance, while the Economic Affairs Division will be responsible for managing approximately $19.5 to $20 billion.
