Pakistan Seeks $4 Billion Loan From Middle Eastern Banks to Unlock New IMF Bailout
Pakistan is currently in advanced negotiations with Middle Eastern banks to secure $4 billion in loans to meet its external financing needs for the current fiscal year. This financial maneuver aims to unlock a crucial $7 billion bailout from the International Monetary Fund (IMF).
Finance Minister Muhammad Aurangzeb has conducted virtual meetings with key executives from Dubai Islamic Bank (DIB) and Mashreq Bank to explore investment opportunities in Pakistan. During these discussions, Aurangzeb highlighted the country’s ongoing efforts to stabilize its economy and the anticipated revival of commercial borrowing from the Middle East, which had been hindered by downgraded credit ratings.
For the ongoing fiscal year, Pakistan’s budget outlines $20 billion in foreign borrowing, including $4 billion targeted through commercial loans and $1 billion through international bonds. Both DIB and Mashreq Bank have shown significant interest in enhancing their financial engagement with Pakistan, especially in areas such as infrastructure, energy, technology, and Islamic banking.
