Pakistan is seeking a $1.75 billion loan from commercial banks at higher interest rates to meet the conditions set by the International Monetary Fund (IMF) for loan approval. The government is in talks with three major banks to secure the loan, with the possibility of long-term financing at an interest rate of around 5%. This loan is essential to maintain the country’s liquidity and fulfill IMF’s requirements.
In addition to the commercial bank loans, Pakistan is also:
- In discussions with Saudi Arabia for an oil loan facility, although the deal has reportedly stalled
- Applying for loans from the International Islamic Trade Finance Corporation (ITFC), Islamic Development Bank (IDB), and Standard Chartered Bank
- Seeking to restructure commercial loans ranging from $800 million to $1 billion with Standard Chartered Bank
Finance Minister Muhammad Aurangzeb expressed optimism about the progress of ongoing talks with the IMF, stating that discussions for the approval of the IMF loan program are at an advanced stage and will soon be finalized. He also highlighted ongoing negotiations with Saudi Arabia for an oil loan facility and mutual investment opportunities in various projects.
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