Pakistan gets friendly nations to pledge to roll over their debt.

A fresh $7 billion loan program was agreed upon by Pakistan and the IMF last month at the staff level.

However, it was allegedly necessary for the South Asian country to receive financial assurances from bilateral donors in order for the IMF board to approve the new bailout.

A report published on Tuesday by Bloomberg stated that Pakistan had obtained pledges to roll over debt for a year from China, Saudi Arabia, and the United Arab Emirates. Over the previous three years, bilateral loans totaling $12 billion have been given to Pakistan.

During a Tuesday speech in Islamabad, Finance Minister Muhammad Aurangzeb stated, “We are quite hopeful that the staff-level agreement will be converted into a board approval by the end of the month.”

The amount of rollovers will be the same as previous year, according to Aurangzeb, who was cited by Bloomberg.

As to Bloomberg, Aurangzeb anticipated that the current government of Pakistan would be able to handle a $5 billion funding shortfall over the three-year program of the IMF. Pakistan, with its stable currency, was heading in the right direction, in his opinion.

July saw the conclusion of a 37-month credit package between Pakistan and the International Monetary Fund.

With its reliance on IMF programs going back many years, Pakistan has occasionally been on the verge of a sovereign default and has had to rely on Saudi Arabia and the United Arab Emirates to give it the money it needs to meet the IMF’s requirements for external financing.

After the staff-level agreement with Islamabad, the IMF released a statement in which it stated that the revised program for the Extended Fund Facility would require approval from its executive board as well as “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”