Karachi: Pakistan has successfully secured foreign loans and financing to support its economic development initiatives during the current fiscal year. Here are the key highlights:
1. China and Saudi Arabia: Pakistan will roll over a $9 billion loan from China and Saudi Arabia. These funds are crucial for addressing the country’s financial obligations.
2. Repayments and Commitments: Secretary of Economic Affairs, Kazim Niaz, revealed that Pakistan needs to make repayments totaling $20.8 billion in the current fiscal year. Additionally, there are confirmed commitments of $10.7 billion for various project financing endeavors.
3. Diamer Bhasha Dam Project: External financing arrangements are in place for the Diamer Bhasha Dam project. Support comes from the Arab Coordination Group and the Qatar Fund for Development, ensuring progress on this critical infrastructure project.
4. Saudi Arabia’s Contribution: Saudi Arabia has extended credit for oil and commodities, further bolstering Pakistan’s financial stability.
5. Geneva Donors Conference: Pakistan has received $3 billion under the Geneva Donors Conference, demonstrating international support for the country’s development goals.
6. World Bank and Asian Infrastructure Investment Bank: The Dasu Hydropower Project will receive $1 billion from the World Bank, with the first phase expected to be completed by 2027. Additionally, the Asian Infrastructure Investment Bank will provide funding for five infrastructure projects.
7. Oversight Challenges: It’s important to note that oversight mechanisms are not in place for all foreign-funded projects across the country. Ensuring transparency and effective management remains a priority.
Pakistan’s efforts to secure foreign financing aim to promote economic growth, infrastructure development, and overall stability. As the nation continues its journey toward progress, strict adherence to fiscal targets and robust reforms will be essential.