Pakistan has agreed terms for a $1 billion loan with two Middle Eastern banks at an interest rate of 6% to 7%, Finance Minister Muhammad Aurangzeb said. Reuters Tuesday, as the country seeks more funding.
“With two institutions we have made progress in signing the term sheet: one bilateral and another for trade. [finance]”Aurangzeb said during an interview on the sidelines of the annual meeting of the World Economic Forum in Davos.
The loans were short-term, or up to a year, Aurangzeb added.
The Finance Minister is in Davos to attend the WEF annual meeting between January 20 and 25. World leaders will address key global and regional challenges at the 2025 annual meeting.
The meeting will focus on responding to geopolitical crises, fostering growth to improve living standards and managing a fair and inclusive energy transition.
Pakistan aims to boost its finances after securing a $7 billion bailout from the International Monetary Fund (IMF) in September 2024, with the first review scheduled for late February.
“We have the first formal review of the EFF towards the end of February,” Aurangzeb said. “I think we’re in a good position for that review.”
The IMF’s Extended Fund Facilities (EFS) provide financial assistance to countries facing serious medium-term balance of payments problems as a result of structural weaknesses that require time to address.
This is a developing story and is being updated with more details.
