China, Saudi Arabia Likely to Rollover $9 Billion Loans to Pakistan This Year

China and Saudi Arabia will roll over $9 billion in loans to Pakistan in the current fiscal year 2024-25, officials of the Economic Affairs Division (EAD) informed the National Assembly Standing Committee on Economic Affairs in Islamabad today. Officials briefed the committee that EAD is in contact with the Arab Coordination Group and the Qatar Fund for Development to secure funding for the Diamer Bhasha Dam within this financial year. Officials also confirmed plans to roll over $9 billion in loans from China and Saudi Arabia. Pakistan faces a total repayment of over $20.8 billion this fiscal year. EAD expects to receive $500 million from the Islamic Development Bank for oil and commodity loans. However, Saudi Arabia is currently not in favor of giving Pakistan another loan oil facility. The committee was briefed that the Geneva Donor Conference, which was held in January 2023, pledged $10.7 billion in project financing, of which Pakistan has received just $3 billion, mostly in the form of debt instead of grants. Officials added that this fiscal year, Pakistan will likely receive $1 billion from the World Bank for the Dasu Hydropower Project, with the first phase of the project expected to be completed by 2027. Meanwhile, the Asian Infrastructure Investment Bank will be awarded the construction contract for the N5 project. EAD officials highlighted the lack of a monitoring mechanism for all NGO projects nationwide but assured that funding is monitored to prevent misuse for terror financing. The committee requested more details of projects involving delayed external financing at the next meeting.