Caretaker govt seeks $11 bln aid from China, Saudi Arabia

Islamabad: In an effort to restore the country's economic stability, Pakistan's caretaker government has formally requested $11 billion in aid from China and Saudi Arabia.

Caretaker Finance Minister Dr. Shamshad Akhtar presented this policy statement during a Senate Standing Committee meeting.

The meeting, chaired by Senator Saleem Mandviwala, took place on Thursday, focusing on financial and revenue matters.

Dr. Shamshad Akhtar explained that the government is actively working on expanding the tax base, particularly in the retail, agriculture, and real estate sectors.

During the session, Dr. Shamshad Akhtar also mentioned that the federal government is considering a partial transfer of the Benazir Income Support Program to the provinces to alleviate the financial burden on the federal government.

While acknowledging the limitations of the caretaker government, the Finance Minister emphasized its commitment to implementing essential reforms required to secure the next tranche of loans from the International Monetary Fund (IMF).

Pakistan hopes to receive $700 million from the IMF, but its financial requirements surpass this amount.

Dr. Shamshad Akhtar informed the committee that Pakistan has requested $11 billion in aid from both Saudi Arabia and China.

Additionally, the country has sought an oil facility from Saudi Arabia.

He outlined that Pakistan has initiated efforts to secure $6.3 billion from institutions like the World Bank to meet its external financing needs.

Under the current agreement with the IMF, Pakistan is required to bolster its foreign exchange reserves to $9 billion in the near term, with a target of reaching $12 billion by June 2024, as stated in Dr. Shamshad Akhtar's written statement.