KARACHI – Pakistan again turned to Middle Eastern Banks for $1 billion Loan to shore up finances at 6-7 percent interest rate, Finance Minister Muhammad Aurangzeb said on Tuesday.
The country with $350 billion economy secured $1 billion loan agreement with two Middle Eastern banks, as these short-term loans include one bilateral loan and one for trade finance. Finance Minister revealed the deal during an interview at the World Economic Forum (WEF) in Davos.
The new funds will shore up the country’s reserve and will further strengthen the finances of South Asian nation after $7 billion bailout from International Monetary Fund (IMF) in September last year.
The finance czar expressed confidence ahead of first formal review of Extended Fund Facility (EFF) from the IMD which is scheduled for the late February. He termed Pakistan in a better position, reflecting optimism about Pakistan’s progress under the financial program.
Pakistan pushed hard for these bailout funds while facing serious balance of payments challenges, and it address structural weaknesses that require time to resolve. The country is also relying on support to stabilize its economy and implement necessary reforms.
This review is said to help Pakistan’s adherence to IMF program after receiving a $7 billion bailout package in September last year.
Finance Minister Aurangzeb is attending the World Economic Forum (WEF) 2025 in Davos, Switzerland. He will participate in discussions on global debt, technology’s impact on trade, and Pakistan’s economic outlook. He is slated to meet with leaders from Saudi Arabia, Egypt, and Qatar, and speak on “Digital Pakistan” and “Investment in Pakistan.”
