Pakistan plans to borrow more than $4bn from the Saudi-backed Islamic Development Bank as part of its attempts to restore dangerously low stocks of foreign currency.
The Islamic Development Bank (IDB) has agreed to make a formal offer to lend Pakistan $4 billion when Imran Khan takes over as country’s Prime Minister, two officials told the Financial Times.
“The paperwork is all in place,” said one senior adviser in Islamabad. “The IDB is waiting for the elected government to take charge before giving their approval.”
The official said that the loan would not cover Pakistan’s expected financing gap of at least $25 billion during the financial year but was “an important contribution”.
One official at the State Bank of Pakistan who has been involved in negotiations with the IDB said the loan had the backing of the Saudi government, “which wants to play a part in rescuing Pakistan from its present crisis”.
SAMAA contacted the officials at the Ministry of Finance for their comments but they declined to speak on the matter.