The International Monetary Fund (IMF) has expressed concerns regarding the stalled $1.2 billion Saudi Oil Facility (SOF) for Pakistan, warning of potential delays as Saudi Arabia may link the facility to ongoing negotiations over the Reko Diq mining deal. This facility was initially part of Pakistan’s $7 billion IMF bailout package, but Saudi Arabia has yet to fulfill its commitment.

According to a report from a national daily, the Saudi Fund for Development (SFD) is expected to visit Islamabad next month to discuss the issue further. The delay in the oil facility is a significant concern for Pakistan, which is already grappling with a projected $2.6 billion external financing gap.

In an effort to address this gap, officials from Pakistan’s Ministry of Finance have reported a recent currency swap of 3 billion Yuan with China. However, China has declined to increase the swap limits. Additionally, a pending $500 million loan from Dubai Islamic Bank is awaiting a guarantee from the Asian Development Bank (ADB).

Meanwhile, the Federal Board of Revenue (FBR) is working to meet its ambitious tax target of Rs. 12.97 trillion, despite a Rs. 189 billion shortfall in the first four months of the fiscal year. FBR Chairman Rashid Mehmood Langrial has requested an in-camera Senate briefing on the ongoing IMF discussions, following inquiries from Senator Faisal Sabzwari about the progress in collecting the Agriculture Income Tax.

The IMF has also noted Pakistan’s missed deadline to align provincial Agriculture Income Tax (AIT) with federal tax policies by October 31, adding to the financial challenges facing the country. As Pakistan navigates these complex financial issues, the resolution of the Saudi Oil Facility remains a critical component of its economic strategy.