IMF to mobilize $38.6 billion from Pakistan’s international partners

The International Monetary Fund (IMF) supported program is expected to mobilize total financing of around $38.6 billion over three years from Pakistan’s international partners.

This has been stated in the IMF report titled ‘Request for an Extended Arrangement under the Extended Fund Facility’. Significant financial support by official and bilateral partners aims to provide an important safeguard.

The first 12 months are fully financed with the expected support from multilateral development banks and bilateral creditors as follows:

• China $6.3 billion
• Saudi Arabia $6.2 billion
• UAE $1 billion
• World Bank $1.3 billion
• Asian Development Bank $1.6 billion
• Islamic Development Bank $1.1 billion.

To support long-term debt sustainability, the authorities have also received firm commitments from key bilateral partners such as China, Saudi Arabia, and the UAE.

This will maintain their exposure throughout the program period and adjust the financing modalities to ensure that the new financing will be consistent with the program debt sustainability objectives by ensuring a manageable external debt servicing profile beyond the end of the IMF-supported program.