ISLAMABAD: Pakistan is in talks separately with Saudi Arabia, Qatar and the United Arab Emirates (UAE) to help support its economy, Finance Minister Miftah Ismail said on Sunday, adding that Saudi Arabia would re-roll deposits due in December and extend the limit on purchasing oil on deferred payments.
Pakistan is currently engaged with the International Monetary Fund (IMF) for the revival of a $6 billion loan program as it battles a widening current account deficit, weakening currency and depleting foreign exchange reserves that can roughly cover import payments for two months. Inflation in the South Asian nation is in the double digits.
If IMF review talks succeed, Pakistan would receive around $1 billion from the global lender and unlock other sources of external financing also. The country is also reaching out to friendly countries for financial assistance, with Saudi Arabia last year depositing $3 billion in
Pakistan's central bank to help support its foreign reserves. Last month the Saudi finance minister said Riyadh was finalising the extension of the kingdom's $3 billion deposit.
"One thing Saudi Arabia has already told us is that 'money due to you in December will be re-rolled'," Ismail said on Sunday in an interview to a local news channel. "Saudi Arabia also said that your limits to purchase oil on deferred payments will be increased."
Ismail said the government intended to request Qatar to grant liquefied natural gas (LNG) to Pakistan on a deferred payment facility.
"It would be good if they could help us a bit in this regard," he said. "And with the UAE, we have also had some talks."
The minister said his government had held "positive" talks with two to three stakeholders and was now awaiting outcomes.
