Pakistan is facing a major financial challenge as it must make external payments totaling $4.864 billion between October and December, according to government sources. This includes the $3 billion deposit from Saudi Arabia, which is set to mature in the first week of December.
The government plans to seek an extension on the Saudi deposit, which, if granted, would reduce the external payment burden for the current quarter to $1.864 billion.
According to official sources, the $4.864 billion in payments for the current quarter include: $3 billion in deposits, primarily from Saudi Arabia, $783 million in repayments on external commercial loans, and $1.081 billion in scheduled multilateral and bilateral debt payments.
The $3 billion Saudi deposit is a major component of the upcoming payments. The Pakistani government intends to negotiate an extension of this deposit, which would significantly ease pressure on foreign reserves in the short term.
If the extension is secured, Pakistan’s total external payment requirement for the October–December quarter would drop to $1.864 billion, easing the country’s fiscal stress.
Government sources say that Pakistan’s total external payment obligations for the current fiscal year amount to $19.56 billion. This includes $9 billion in deposits from Saudi Arabia and China, with $5 billion owed to Saudi Arabia and $4 billion to China.
The government is reportedly planning to roll over both of these deposits to avoid immediate repayment and stabilize the country’s foreign exchange position.
