The Standing Committee on Economic Affairs has been informed that Saudi Arabia has declined to extend the credit facility for crude oil.
According to sources during the briefing, the Secretary of the Economic Affairs Division informed the committee that Pakistan plans to roll over $9 billion in loans from Saudi Arabia and China this year. However, Saudi Arabia has refused to provide crude oil on credit again. Additionally, no foreign investors are willing to discuss the Diamer-Bhasha Dam project due to political reasons. Of the $10 billion pledged for flood victims, only $3 billion has been received.
The briefing further revealed that the Economic Affairs Division is contacting the Arab Coordination Group and the Qatar Fund for Development for funding. This fiscal year, $9 billion in loans from China and Saudi Arabia will be rolled over, and external financing will be arranged for the Diamer-Bhasha Dam project. Overall, Pakistan has to make payments of $20.8 billion this year. The Islamic Development Bank will provide $500 million in credit for oil and commodities.
It was also noted that Pakistan had received only $3 billion from the Geneva Donor Conference. Pakistan has assurances of $10.7 billion for project financing. This fiscal year, the World Bank will provide $1 billion for the Dasu Hydropower Project, with the first phase expected to be completed by 2027. The Asian Infrastructure Investment Bank will be awarded the construction contract for the N5 highway.
The Secretary of the Economic Affairs Division mentioned that no mechanism exists to monitor all NGO projects nationwide. Still, it is ensured that NGO funding is not used for terror financing. The Standing Committee has requested details of projects with delayed external financing for the next meeting.
