ISLAMABAD: As the nation's eighth assessment of a $7 billion IMF bailout hit roadblocks, Pakistan is poised to obtain a multibillion-dollar financial rescue package from longtime ally Saudi Arabia this month, according to two sources.

According to the two representatives of the finance ministry, the Saudi package would include oil on deferred payments as well as deposits to increase the nation's foreign reserves.

Ishaq Dar, the finance minister, expressed prior optimism for swiftly approaching discussions with Saudi Arabia.

One of the senior officials told Reuters: "We are hoping that we will, God willing, get financial support from Saudi Arabia, most likely this month. It will be approximately a $4 billion deal."

He stated, "Some of that package will go to our reserves, and the remainder is oil and some other commodities on deferred payments.

"Brotherly ties exist between Saudi Arabia and Pakistan. Both nations have provided assistance when needed, "According to a spokesperson for the finance ministry, who declined to elaborate or provide more information, Reuters.

The balance of payments crisis is affecting Pakistan's economy. Just $6.7 billion in reserves remain at the central bank, barely enough to cover imports for a month.

In contrast to the 0.7% of GDP that was agreed upon with the IMF, the fiscal deficit reached 1% of GDP in the first quarter of the current fiscal year.

Unusual

Pakistan has been desperately trying to find funding to meet its foreign payment obligations for the current financial year because the IMF's ninth review has been on hold since September.

Prior to the review, Pakistan tried to contact allies to request financial assistance, and Dar had stated that he would anticipate receiving $3 billion from a friendly nation.

Dar stated on Monday that the IMF had requested further material in order to complete the ninth review, calling the situation "strange" given that Islamabad had already satisfied all the conditions.

The terrible flood that hit Pakistan this summer was believed to have caused over $30 billion in losses, and the IMF demanded an explanation from Pakistan regarding how it would pay for the costs of reconstruction and rehabilitation.

The government and the IMF both claimed that online debates about the review persisted. A time for the IMF's physical review has not yet been set.

In order to discharge more than $1.1 billion under Pakistan's bailout programme agreed upon in 2019, the IMF authorised the seventh and eighth reviews jointly in August.

In 2019, Pakistan received a bailout of $6 billion, which was increased by $1 billion earlier this year.