Pakistan gets more financial guarantees from China, the UAE, and a Saudi IMF official

An IMF official said on Thursday that Pakistan has gotten “significant financing assurances” from China, Saudi Arabia, and the United Arab Emirates as part of a new program with the International Monetary Fund. These go beyond a deal to roll over $12 billion in bilateral loans that Islamabad owes these countries.

Nathan Porter, who is in charge of the IMF’s mission in Pakistan, wouldn’t say how much extra money China, Saudi Arabia, and the UAE had agreed to give, but he did say that it would be on top of the debt rollover.

The IMF’s Executive Board approved a new loan deal for Pakistan on Wednesday. The loan is for $7 billion and lasts for 37 months. In exchange, Pakistan must implement “sound policies and reforms” that will make the economy more stable. This South Asian country is in a lot of trouble and has had 22 IMF bailout plans since 1958.

On a conference call with reporters, Porter said, “I won’t go into the specifics, but the UAE, China, and the Kingdom of Saudi Arabia all joined this program and gave important financial guarantees.”