Pak Army chief Gen Bajwa reaches out to UAE, Saudi Arabia for crucial bailout package

Days after seeking US help in securing an early release of a crucial USD 1.7 billion instalment from the IMF to Pakan, Army chief General Qamar Javed Bajwa has now reached out to Saudi Arabia and the UAE as part of his efforts to ensure financial assance for the cash-strapped nation, according to a media report on Saturday.
As the Executive Board of the International Monetary Fund is set to meet later this month to formally approve the next tranche of USD 1.2 billion instalment, the international lender wants Pakan to ensure it receives commitment from its friends for financial assance, the Express Tribune newspaper reported.
It is believed that the IMF has asked Pakan to provide firm guarantees that its friends would provide USD 4 billion for its external requirements.
Pakan is in talks with key allies like Saudi Arabia, the UAE and China to provide the necessary funding, the report said.
When Prime Miner Shehbaz Sharif travelled to Saudi Arabia in April, he returned empty-handed as Riyadh had not given any firm assurance. The UAE was also reluctant to come to the rescue. Instead of providing loans, the UAE offered Pakan to buy shares and assets.
“Against this backdrop, the army is believed to have spoken to the authorities both in Saudi Arabia and the UAE for financial help,” the report said.
Pakan Army’s media wing in a statement on Friday said that General Bajwa received a telephone call from UAE President Mohamed bin Zayed al-Nahyan during which the Gulf leader expressed deepest condolences over the tragic loss of precious lives due to the helicopter crash in Lasbela.
It, however, made no mention of any talks related to financial aid to Pakan.
The latest development came days days after Bajwa reportedly spoke to US Deputy Secretary of State Wendy Sherman in July last week seeking Washington’s help for an early meeting of the IMF Executive Board.
Bajwa spoke over phone with Sherman and also appealed to the White House and the US Treasury Department to push the IMF to immediately expedite the nearly USD 1.2 billion loan, state-run news agency Associated Press of Pakan (APP) had reported, quoting sources in the Pakan Army.
However, the Foreign Office had feigned ignorance if the two leaders talked about economy even as it confirmed that Bajwa and Sherman had a telephonic conversation.
Bajwa in the past acted as a key interlocutor on financial matters as he travelled to the Gulf countries seeking financial assance for the government of Prime Miner Imran Khan in 2018. It was because of his military diplomacy, the UAE and Saudi Arabia extended financial bailout packages, the Express Tribune report said.
The reason the army chief had to play a role stemmed from the fact that other countries perhaps were not ready to accept the assurances of the civilian leadership, it said.
Saudi Arabia, the UAE and China in the past always supported Pakan in difficult situations but this time they linked their assance under certain conditions. Saudi Arabia and the UAE are particularly working in tandem with the IMF and other Western countries on financial assance for Pakan.
But with the army’s chief outreach, sources are confident that Pakan would get the required financial assance to pull the country out of the current economic crunch, the report said.