Pakistan to seek IMF bailout despite $6b Saudi rescue

Finance ministry confirms negotiations to begin in first week of November

ISLAMABAD: Pakistan still plans to seek a bailout from the International Monetary Fund (IMF) despite Saudi Arabia agreeing to offer a $6 billion rescue package, Pakistan's finance ministry said on Wednesday.

"Yes, we are going ahead into programme negotiations with IMF in the first week of November," Pakistan's finance ministry spokesman Noor Ahmed told Reuters in a text message.



On Tuesday, Islamabad announced Saudi Arabia had agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis.

The Pakistan Stock Exchange index shot up 3.3% in early trading on the news of the Saudi help. Prime Minister Imran Khan said this week Pakistan was seeking help from "friendly nations", which is usually a reference to close allies Saudi Arabia and China, to go with any IMF programme.

Khan is due to travel to China in the first week of November, where he is expected to seek further assistance.