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Pakistan secures $1 bln loan from two Middle Eastern banks
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- Reuters
- Jan 21, 2025

DAVOS: Pakistan has agreed terms for a $1 billion loan with two Middle Eastern banks at a 6%-7% interest rate, its Finance Minister Muhammad Aurangzeb told Reuters on Tuesday, as the South Asian country 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 (WEF) annual meeting in Davos.
The loans were short-term — or up to one year, Aurangzeb added.
Pakistan aims to boost its finances after securing a $7 billion International Monetary Fund (IMF) bailout in September 2024, with the first review set for late February.
“We have the first formal review of the EFF coming through towards (the) end of February,” Aurangzeb said. “I do think we are in good stead for that review.”
IMF extended fund facilities (EFFs) provide financial assistance to countries facing serious medium-term balance of payments problems resulting from structural weaknesses that require time to address.
Meanwhile, according to the press communique issued by the Finance Ministry, Senator Aurangzeb held a number of productive meetings on the sidelines of the WEF annual meeting.
He met with CEO of MNT-Halan Mounir Nakhla, Minister of Planning of Egypt Rania Al Mashat, Minister of Foreign Affairs of Tunisia Mohamed Ali Nafti, Chairman of the Saudi National Bank Saeed bin Mohammad Al Ghamdi, and other dignitaries gathered up in Davos to ponder over the challenges global economy faces.
He discussed the ongoing operations of MNT-Halan in Pakistan with its CEO and highlighted opportunities for collaboration in digital finance to enhance financial inclusion in the country.
He emphasized the Government of Pakistan’s commitment to fostering partnerships in financial innovation to support economic development.
The CEO expressed his interest in expanding investments in Pakistan’s fintech sector.
Similarly, in his meeting with Planning Minister of Egypt, Aurangzeb discussed ongoing programmes and projects between Pakistan and Egypt. He apprised Dr Rania about the positive macroeconomic indicators of Pakistan’s economy.
Both Ministers agreed to continue discussions on economic and financial matters and emphasized the importance of learning from each other’s experiences.
