Pakistan, once again, faces a huge external financing gap of $6.5 billion. In this regard, the government has decided to approach friendly countries, including Saudi Arabia and the United Arab Emirates (UAE).
As the technical-level talks between Pakistan and the International Monetary Fund (IMF) are underway, it has come to light that Pakistan once again faces a huge external financing gap of $6.5 billion.
To fill the financing gaps, the government has decided to approach friendly countries, including Saudi Arabia and the UAE, as per sources.
The sources within the Finance Ministry further said the plan for external financing has been shared with the IMF.
A proposal was discussed to get a billion-dollar loan refinanced from China, while assistance will also be sought from the Islamic Development Bank, Asian Development Bank and the World Bank.
The sources further said that there is a plan to reduce the fiscal gap through a reduction of the current account deficit.
As compared to the annual target of $6 billion, the deficit in three months remained $947 million. The new government will have to negotiate a major loan programme with the IMF, the sources said.
