China, Saudi Arabia to roll over $9bn debt for Pakistan in FY25

July 26, 2024 (MLN): Pakistan's debt of $9 billion owed to China and Saudi Arabia will be rolled over in the ongoing fiscal year 2025 (FY25), Kazim Niaz, the Secretary of Economic Affairs stated.

According to the secretary, the country is obligated to pay $20.8bn in the current fiscal year.

He further shared that Economic Affairs Division (EAD) seeks a funding plan from Arab Coordination Group and Qatar Fund for Development for Diamarbhasha Dam project, with which the authorities are in contact.

Relatedly, officials expressed optimism that external financing for the Diamer-Bhasha Dam will be arranged this financial year.

While sharing the details of inflows from partners, the secretary said that $500m will be received from the Islamic Development Bank for oil and commodity loans.

Additionally, he shared that Pakistan could receive only $3bn out of the $10.7bn in project financing assurances under the Geneva Donor Conference.

under the Geneva Donor Conference, with assurances of $10.7bn in project financing for Pakistan.

However, Saudi Arabia is not in favor of providing a loan for the oil facility again.

Pakistan anticipates $1bn from the World Bank for the Dasu Hydropower Project, which is scheduled to be completed in 2027.

Moreover, the Asian Infrastructure Investment Bank will handle the N5 project.

Highlighting issues related to NGO funding, the Secretary stated that there is no mechanism for monitoring the projects of all NGOs across the country, which increases the risk of exposure to terror financing.

"The committee may seek details of projects involving delayed external financing in the next meeting," he concluded.

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