Saudi Arabia rolls over Pakistan's $3 billion loan as govt awaits $10 billion US facility

Saudi Arabia has extended the repayment period on Pakistan’s $3 billion loan, which fell due in October, Finance Minister Muhammad Aurangzeb said on Wednesday. He did not provide a revised maturity date, while sources described the extension as short-term, Profit by Pakistan Today reported. Aurangzeb said Pakistan could meet its external financing needs even if a proposed $10 billion US liquidity facility is not approved.

Pakistan’s foreign exchange reserves were $21.5 billion, equivalent to three months of imports, and the government and State Bank of Pakistan aim to raise cover to four months by the fiscal year-end. Finance Secretary Imdadullah Bosal said external financing needs total $21.5 billion this fiscal year, including $17.5 billion in principal repayments, and that $5 billion had already been repaid in the first four months. The government plans to extend borrowing maturities and continue issuing international bonds; the IMF board is tentatively expected to consider $1.2 billion in loan tranches in December.