Pakistan’s dependence on external financial support is deepening, with Saudi Arabia adding another $3 billion to Pakistan’s foreign exchange reserves.

The latest support takes Saudi cash deposits with Pakistan’s central bank to $8 billion, providing Islamabad with additional foreign-exchange liquidity and helping meet external financing pressures.

But the fresh Saudi support does not resolve Pakistan’s underlying financing challenges. Islamabad is also looking toward Washington, with Finance Minister Muhammad Aurangzeb confirming that Pakistan has formally requested a $10 billion exchange stabilization support facility from the United States.

Pakistan says the proposed US facility would not be a conventional loan or credit line, but rather a confidence signal for its currency and foreign-exchange stability. Islamabad hopes stronger external backing could improve investor confidence and eventually help the country return to international capital markets for longer-term borrowing.

Pakistan’s Financial Crisis Deepens: Saudi Adds $3 Billion As Islamabad Seeks $10 Billion From US

Pakistan continues to rely on international financial assistance as concerns grow over the country's long-term economic stability. With repeated bailout packages and limited structural reforms, leading global financial institutions are warning about deep-rooted vulnerabilities. Is Pakistan trapped in a cycle of borrowing, or can meaningful reforms change the country's economic trajectory?

Pakistan's economy running on lifelines 

Out of the $6 billion bailout package, Pakistan will receive the instalment of $1 billion from the International Monetary Fund (IMF) today.

"Pakistan has paid attention to economic reforms...It was necessary to bump up tax collection in order to stabilise the economy," Ernesto Ramirez-Rigo, the IMF mission chief for Pakistan, said at a conference on Monday, according to Geo News.

The package is aimed at the stability of the country's economy and institutions.

"The bailout package will help Pakistan to pay its external debts, recover from its fiscal deficit, keep foreign exchange reserves to the equivalent of 3 months of imports and curb further devaluation of the rupee," Dunya News reported.

Ramirez-Rigo added that the bailout package indicated that Pakistan would implement "economic discipline."

The three-year bailout package was approved by the IMF's Executive Board last week.

"IMF Executive Board approved today a three-year US$6 billion loan to support Pakistan's economic plan, which aims to return sustainable growth to the country's economy and improve the standards of living," Gerry Rice, the IMF's spokesperson had confirmed the news on Twitter on July 3.

The Asian Development Bank has also announced plans to lend $10 billion to Pakistan for various development projects over the next five years.

Out of the $6 billion bailout package, Pakistan will receive the instalment of $1 billion from the International Monetary Fund (IMF) today. "Pakistan has paid attention to economic reforms.

Out of the $6 billion bailout package, Pakistan will receive the instalment of $1 billion from the International Monetary Fund (IMF) today. "Pakistan has paid attention to economic reforms...It was necessary to bump up tax collection in order to stabilise the economy," Ernesto Ramirez-Rigo, the IMF mission chief for Pakistan, said at a conference on Monday, according to Geo News. The package is aimed at the stability of the country's economy and institutions. "The bailout package will help Pakistan to pay its external debts, recover from its fiscal deficit, keep foreign exchange reserves to the equivalent of 3 months of imports and curb further devaluation of the rupee," Dunya News reported. Ramirez-Rigo added that the bailout package indicated that Pakistan would implement "economic discipline." The three-year bailout package was approved by the IMF's Executive Board last week. "IMF Executive Board approved today a three-year US$6 billion loan to support Pakistan's economic plan, which aims to return sustainable growth to the country's economy and improve the standards of living," Gerry Rice, the IMF's spokesperson had confirmed the news on Twitter on July 3. The Asian Development Bank has also announced plans to lend $10 billion to Pakistan for various development projects over the next five years.

Pakistan to receive first trench of International Monetary Fund bailout package

Pakistani stocks fell on Monday, a day after the country received its 22nd bailout from the <a href="https://www.wionews.com/south-asia/decisive-policies-and-reforms-must-for-pakistans-economic-stability-imf-218413">International Monetary Fund (IMF)</a>, as investors and analysts expressed doubt over the reported conditions of the deal.

The benchmark KSE-100 index of the <a href="https://www.wionews.com/south-asia/pakistan-to-continue-talks-with-imf-on-bailout-over-weekend-217714">Pakistan Stock Exchange (PSX)</a> dropped by 816 points or 2.41 per cent to close at 33,900 points.

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"The investors have taken the IMF conditions as negative, especially with regard to free float of the rupee against the dollar and increasing the interest rate," Yawar Uz-Zaman, head of Research at Shajar Capital, a brokerage house in Karachi.

Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington.

<a href="https://www.wionews.com/pakistan/pakistan-media-and-people-scared-of-speaking-against-cpec-us-lawmakers-told-218824">Also read:&nbsp;Pakistan media and people scared of speaking against CPEC, US lawmakers told</a>

For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, soaring inflation, and mounting debt.

Analysts have warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Prime Minister Imran Khan's grand promises as the country is forced to tighten its purse strings.

Khan had long vowed not to go to the IMF, and his political opponents were quick to deride the announcement, with one particularly dark tweet from Bilawal Bhutto Zardari, son of assassinated prime minister Benazir Bhutto.

"So who's got our PM on suicide watch then? #PTIMF" he tweeted, using a hashtag to play on the name of Khan's party -&nbsp;Pakistan Tehreek-e-Insaf, or PTI -&nbsp;and the IMF.&nbsp;

Some analysts suggested $6 billion would not be enough to pull the country back from the brink, with Zaman describing it as "insufficient".&nbsp;

Mohammad Sohail, CEO of Karachi-based brokerage house Topline Securities, said they believe Pakistan's annual foreign payments could be as high as $14 billion.&nbsp;

If Khan's government can secure more funding from donors including China and Saudi Arabia, from whom Khan has already raised billions, then it could be sufficient, he said. "If not, it would not be enough for the foreign payments."

Salman Ahmed, head of institutional sales at Aba Habib Ali, a brokerage house in Karachi, said the amount was less important than the fact a deal had been struck at all.

"This will give the government a breathing space, and now it can look around for other sources of financing foreign debts," he said.

Pakistani stocks fell on Monday, a day after the country received its 22nd bailout from the International Monetary Fund (IMF), as investors and analysts expressed doubt over the reported conditions of the deal.

Pakistani stocks fell on Monday, a day after the country received its 22nd bailout from the International Monetary Fund (IMF), as investors and analysts expressed doubt over the reported conditions of the deal. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) dropped by 816 points or 2.41 per cent to close at 33,900 points. "The investors have taken the IMF conditions as negative, especially with regard to free float of the rupee against the dollar and increasing the interest rate," Yawar Uz-Zaman, head of Research at Shajar Capital, a brokerage house in Karachi. Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington. Also read: Pakistan media and people scared of speaking against CPEC, US lawmakers told For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, soaring inflation, and mounting debt. Analysts have warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Prime Minister Imran Khan's grand promises as the country is forced to tighten its purse strings. Khan had long vowed not to go to the IMF, and his political opponents were quick to deride the announcement, with one particularly dark tweet from Bilawal Bhutto Zardari, son of assassinated prime minister Benazir Bhutto. "So who's got our PM on suicide watch then? #PTIMF" he tweeted, using a hashtag to play on the name of Khan's party - Pakistan Tehreek-e-Insaf, or PTI - and the IMF. Some analysts suggested $6 billion would not be enough to pull the country back from the brink, with Zaman describing it as "insufficient". Mohammad Sohail, CEO of Karachi-based brokerage house Topline Securities, said they believe Pakistan's annual foreign payments could be as high as $14 billion. If Khan's government can secure more funding from donors including China and Saudi Arabia, from whom Khan has already raised billions, then it could be sufficient, he said. "If not, it would not be enough for the foreign payments." Salman Ahmed, head of institutional sales at Aba Habib Ali, a brokerage house in Karachi, said the amount was less important than the fact a deal had been struck at all. "This will give the government a breathing space, and now it can look around for other sources of financing foreign debts," he said.

Pakistan stocks crash as PM Imran receives 'insufficient' IMF bailout

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China.

Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year.

According to adviser and spokesman for the Ministry of Finance Khaqan Najeeb, the IMF team will meet officials of the ministry, the Federal Board of Revenue and the State Bank during its visit.

The two sides will discuss the possibility of a $7 to $8 billion loans for Pakistan, Geo News reported.

"The talks aim to determine the terms and conditions of the three-year programme," an official at the finance ministry told PTI.

The details of the package will be finalised between the funds' team lead by the director for the Middle East and Central Asia Ernesto Meris and Finance Secretary Yunus Dhaga.

The talks will continue for about a week, the official said.

Pakistan has already finalised the summary of data on various economic matters as demanded by the IMF, including details about the performance of the economy in the first nine months of the current fiscal year.

The IMF will also get details about the upcoming budget for 2019-20 which is expected to be announced towards the end of May.

Details about loans from China and the IMF insistence to increase the tax-to-GDP ratio to 13.2 per cent were some of the sticking points to finalise the package.

It is not clear how much assistance IMF will provide but Pakistan is expecting between $6-8 billion, the official said.

Pakistan was already taking measures to fulfil some of the pre-conditions to increase exports, widen the tax base and adjust the exchange rate.

Prime Minister Khan met IMF Director Lagarde on Friday on the sidelines of the second Belt and Road Forum in Beijing, China.

During the meeting, they agreed on the importance of the IMF programme for the country and reviewed the relationship between Pakistan and the global lender, the report said.

Khan had identified areas of reforms and initiatives being undertaken by his government to stabilise the economy, control inflation and achieve fiscal balance.

They also agreed on the need for a social safety net for vulnerable groups of society.

"We discussed prospects for a comprehensive policy package and international financial support to help stabilise the economy of Pakistan, and also the need to strengthen governance and protect the poor," Lagarde said in a post after the meeting.

Pakistan wants the IMF to focus on the long-term structural reforms that help revive its economy instead of attaching conditions that would be difficult to implement.&nbsp;

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China.

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China. Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year. According to adviser and spokesman for the Ministry of Finance Khaqan Najeeb, the IMF team will meet officials of the ministry, the Federal Board of Revenue and the State Bank during its visit. The two sides will discuss the possibility of a $7 to $8 billion loans for Pakistan, Geo News reported. "The talks aim to determine the terms and conditions of the three-year programme," an official at the finance ministry told PTI. The details of the package will be finalised between the funds' team lead by the director for the Middle East and Central Asia Ernesto Meris and Finance Secretary Yunus Dhaga. The talks will continue for about a week, the official said. Pakistan has already finalised the summary of data on various economic matters as demanded by the IMF, including details about the performance of the economy in the first nine months of the current fiscal year. The IMF will also get details about the upcoming budget for 2019-20 which is expected to be announced towards the end of May. Details about loans from China and the IMF insistence to increase the tax-to-GDP ratio to 13.2 per cent were some of the sticking points to finalise the package. It is not clear how much assistance IMF will provide but Pakistan is expecting between $6-8 billion, the official said. Pakistan was already taking measures to fulfil some of the pre-conditions to increase exports, widen the tax base and adjust the exchange rate. Prime Minister Khan met IMF Director Lagarde on Friday on the sidelines of the second Belt and Road Forum in Beijing, China. During the meeting, they agreed on the importance of the IMF programme for the country and reviewed the relationship between Pakistan and the global lender, the report said. Khan had identified areas of reforms and initiatives being undertaken by his government to stabilise the economy, control inflation and achieve fiscal balance. They also agreed on the need for a social safety net for vulnerable groups of society. "We discussed prospects for a comprehensive policy package and international financial support to help stabilise the economy of Pakistan, and also the need to strengthen governance and protect the poor," Lagarde said in a post after the meeting. Pakistan wants the IMF to focus on the long-term structural reforms that help revive its economy instead of attaching conditions that would be difficult to implement.

IMF delegation arrives in Pakistan to hold talks on bailout package