Pakistan is facing an external financing gap, once again the decision to turn to friendly countries including Saudi Arabia

Assistance will also be sought from the Islamic Development Bank, Asian Development Bank and the World Bank while the fiscal gap is likely to reduce through reduction in the current account deficit: Sources/File Photo

Islamabad: Pakistan has once again decided to approach friendly countries to close the external financing gap.


According to sources, Pakistan is facing a huge external financing gap of 6.5 billion dollars due to which the caretaker government has decided to turn to friendly countries including Saudi Arabia and UAE.


Sources said that assistance will also be taken from Islamic Development Bank, Asian Development Bank and World Bank while the financial gap is likely to be reduced through reduction in current account deficit.


According to sources, the deficit in 3 months was 947 million dollars compared to the annual target of 6 billion dollars and the caretaker government estimates that the current account deficit will decrease from 6 billion dollars to 4 and a half billion dollars.


Sources say that Pakistan has shared the external financing plan with the IMF and the IMF has demanded to speed up privatization to reduce the external financing gap.


The IMF suggested that the government also consider the option of issuing bonds in the global bond market.