Facing rapidly depleting foreign exchange reserves, Pakistan is actively pursuing the acquisition of two major financial tranches totaling $2.3 billion, comprising a $1.3 billion installment from the International Monetary Fund (IMF) and a $1 billion commercial loan.
According to official sources, the commercial loan agreement has been finalized with Standard Chartered Bank at an interest rate exceeding 7.33%. However, this deal has been made feasible through a sovereign guarantee provided by the Asian Development Bank (ADB) under its Domestic Resource Mobilization Program.
The loan, expected to be secured before June 30, 2025, comes as Pakistan navigates a critical phase in its balance of payments situation. Senior government officials confirmed to The News that without the ADB guarantee, the commercial loan would have cost Pakistan significantly more—between 10% and 11% in interest rates.
The government chose the ADB-backed route to benefit from concessional terms over a five-year period, viewing it as a preferable option to avoid costlier borrowing amid growing fiscal pressures.
