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Pakistan secures $1 bln loan from Middle Eastern banks for economic stabilization

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Web Desk

ISLAMABAD: Finance Minister Muhammad Aurangzeb announced in an interview with Reuters on Tuesday at the World Economic Forum (WEF) annual meeting in Davos that Pakistan has secured a $1 billion loan from two Middle Eastern banks. The interest rate on the loan is 6%-7%.

Aurangzeb clarified that the agreement involves two entities: one providing bilateral financing and the other offering trade finance. Both the loans are short-term with maturities of up to one year.

The funding comes as Pakistan seeks to shore up its finances after a $7 billion bailout package it secured from the International Monetary Fund (IMF) in September 2024.

Expressing confidence, Aurangzeb said, “We have the first formal review of the EFF by the end of February… I think we are in a good position for that review.”

The IMF’s EFF program provides financial assistance to countries facing serious medium-term balance of payments problems stemming from structural weaknesses that require sustained efforts to address.

The $1 billion loan from Middle Eastern banks is a significant step in Pakistan’s efforts to stabilize its economy.

Web Desk

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