The Federal Finance Minister, Muhammad Aurangzeb, said that the UAE rejected debt extension, adding that Pakistan is currently looking for other financial options.
According to the details, the finance minister, Muhammad Aurangzeb, while speaking to the international media outlet, explained the current financial situation of Pakistan. He also explained in detail about the futuristic steps of Pakistan.
The finance minister revealed that Pakistan is facing pressure on foreign exchange reserves after repaying a $3 billion loan, while the UAE has declined to roll over the loan, after which the government is considering all available financial options.
Muhammad Aurangzeb also told the international media outlet that Pakistan has $16.4 Billion foreign exchange reserves, which is enough to cover 3 months of export. However, he showed concern that the escalating tensions in the Middle East could impact Pakistan’s economy in the coming days.
Pakistan’s stance on IMF loan
The finance minister, Muhammad Aurangzeb, also said that Pakistan is not looking for an extension in the IMF program but is looking for alternative sources and commercial financial options. He also said that Pakistan has decided to issue different bonds in the global market for economic stability.
The finance minister said that for the first time, ‘Panda Bonds’ worth $250 million will be issued, in addition to Eurobonds, Islamic Sukuk, and rupee-linked bonds will also be brought to the market.
Muhammad Aurangzeb also expressed hope to receive a loan instalment from the IMF of $1.3 Billion soon. He also said that this will help to reduce the pressure on Pakistan’s reserves.
He clarified that Pakistan is exploring new sources of commercial and bilateral debt to maintain its external balance of payments.
Also Read, FinMin Aurangzeb to discuss trade strategy during upcoming US visit
