IMF Warns Saudis May Halt $1.2 Billion Oil Facility to Pakistan on Reko Diq Talks

The International Monetary Fund (IMF) has raised concerns over the stalled $1.2 billion Saudi Oil Facility (SOF) for Pakistan and has warned of potential delays as Saudi Arabia may tie the facility to negotiations on the Reko Diq mining deal. Saudi Arabia initially committed to the facility as part of Pakistan’s $7 billion IMF bailout but has not yet delivered. The Saudi Fund for Development (SFD) may visit Islamabad next month to discuss the matter, reported a national daily. Pakistan missed an IMF deadline to align provincial Agriculture Income Tax (AIT) with federal tax policies by October 31. Pakistan’s projected $2.6 billion external financing gap remains a key concern for the IMF. To address the gap, officials from the Ministry of Finance reported a recent 3 billion Yuan currency swap with China but noted that China declined to increase the swap limits. A pending $500 million loan from Dubai Islamic Bank is contingent on a guarantee from the Asian Development Bank (ADB). The Federal Board of Revenue (FBR) is striving to meet its Rs. 12.97 trillion tax target despite a Rs. 189 billion shortfall in the first four months of the fiscal year. FBR Chairman Rashid Mehmood Langrial requested an in-camera Senate briefing on the IMF talks after Senator Faisal Sabzwari raised questions about Agriculture Income Tax collection progress.