Pakistan has formally requested a $1.2 billion Saudi Oil Facility (SOF) to address a $2-2.5 billion financing gap identified by the International Monetary Fund (IMF) for the current fiscal year. The country’s Ministry of Finance, however, has not issued an official statement on the matter.
Saudi Arabia has shown interest in investing in Pakistan’s Reko Diq project, aiming to acquire a 15% stake in two phases, but the transaction has yet to be finalized. Pakistan had earlier reached a staff-level agreement with the IMF under the $7 billion Extended Fund Facility (EFF), though this agreement awaits final approval from the Fund’s Executive Board.
In addition to the SOF, Pakistan has also requested $400 to $500 million from the Islamic Development Bank’s ITFC facility and approached Gulf commercial banks, including Standard Chartered Bank (SCB), for a $1 billion loan. Pakistan also seeks to rollover $12 billion in deposits from three bilateral creditors held by the State Bank of Pakistan, along with commercial refinancing of $4 billion to meet the total financing needs of $26.2 billion for the current fiscal year.
During a meeting with Saudi Ambassador Nawaf Bin Said Al-Malki, Pakistan’s Finance Minister Muhammad Aurangzeb emphasized the country’s commitment to implementing a homegrown economic agenda focused on institutional reforms. Aurangzeb appreciated Saudi Arabia’s continued economic support, while Ambassador Malki praised Pakistan’s efforts toward structural reforms and reaffirmed the Kingdom’s commitment to bolstering Pakistan’s economic growth through joint ventures and collaborations.
