- Copy to clipboard
- Moderator
- #16
- Sep 2, 2024
- 112,647
- 282
- Origin
- Residence
Primary goals of new deal
The primary goals of the new bailout package include stabilising Pakistanâs economy by consolidating public finances, rebuilding foreign exchange reserves, and reducing fiscal risks from state-owned enterprises. The programme also aims to create a more conducive environment for private-sector-led growth.The loan deal, finalised in July, was contingent on Pakistan securing $12bn in financial commitments from key allies such as Saudi Arabia, China, and the UAE.
Pakistan secured $5bn in deposits from Saudi Arabia, $4bn from China, and $3bn from the UAE. An additional condition from the IMF required Pakistan to obtain $2bn in external funding from bilateral and commercial sources.
The remaining financing gap of $2-2.5bn was bridged through various means, including Saudi Arabiaâs oil facility, a $400 million loan from the International Islamic Trade Finance Corporation (ITFC) and contributions from Middle Eastern commercial banks, such as Standard Chartered Bank.