Pakistan seeks Saudi economic support through eight requests under long-term economic cooperation, including converting existing Saudi deposits into a longer-term facility and expanding oil on deferred payment terms, according to the report.
The report, citing top official sources, says Pakistan’s economic pressures have intensified amid ongoing geopolitical tensions linked to the US-Israel-led war against Iran. It adds that Islamabad is also negotiating with the IMF to complete the third review under the $7 billion Extended Fund Facility (EFF).
Pakistan Seeks Saudi Economic Support: The Eight Requests Listed
1) Convert $5 billion Saudi deposits into a 10-year facility
Pakistan has asked Saudi Arabia to convert $5 billion in existing deposits parked with the State Bank of Pakistan into a 10-year long-term facility on favourable pricing, the report says.
2) Expand the oil facility on deferred payment to $5 billion
Islamabad has requested an increase in the deferred payment oil facility from $1.2 billion to $5 billion, the report states. It adds that Pakistan also wants the repayment tenor extended from one year to three years, with each tranche repaid after three years.
3) Securitise $10 billion diaspora remittances
The report says Pakistan has sought securitisation of diaspora remittances worth $10 billion, arguing this could boost forex reserves and reduce reliance on costly foreign borrowing.
4) Saudi guarantee for future international sukuk issuance
Pakistan has asked Saudi Arabia to consider providing a guarantee for any new international sukuk issuance, to help raise capital at lower rates, according to the report.
Read: Pakistan Secures Oil Supply from Saudi Arabia via Yanbu Port
5) Concessional credit line for EXIM Bank of Pakistan
The report says Pakistan requested a concessional credit line to the EXIM Bank of Pakistan, described as newly established to support export-led growth under the IMF programme.
6) Waive bank guarantee requirements for import transactions
Islamabad has also asked Saudi Arabia to consider waiving bank guarantee requirements for import-related transactions with Pakistan, the report adds.
7) Investment support, including via the PIF
The report says Saudi Arabia has been asked to consider investment, particularly through the Public Investment Fund (PIF), to explore opportunities in Pakistan.
8) Help adjust primary surplus targets under the IMF programme
Pakistan also requested Saudi support in seeking adjustments to primary surplus targets under the IMF programme to accommodate proposed tax rationalisation. The report says spending is rigid, limiting further cuts, and argues the near-term fiscal deficit could rise even if the long-term impact is positive.
