Finance Minister Muhammad Aurangzeb said on Tuesday that the government has agreed terms for a $1 billion loan with two Middle Eastern banks at a six to seven per cent interest rate as Pakistan looks for more financing.
“With two institutions we have now gone forward in signing up the term sheet — one bilateral and one for trade (finance),” Aurangzeb said during an interview on the sidelines of the World Economic Forum annual meeting in Davos.
Aurangzeb added that the loans were short-term, or up to one year.
Aurangzeb added that Pakistan was aiming to discuss with ratings agencies a move towards a single B rating, hoping to see an upgrade in the coming months.
“Ideally I would like to think that some action in this direction can take place before our fiscal year is over, which is this June,” he said.
