Business

Pakistan seeks $4bn loan from Middle Eastern banks

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Digital Desk

2 years ago

ISLAMABAD: The federal government is considering Middle Eastern banks to secure about $4 billion in loans to meet external financing requirements for the ongoing fiscal year to unlock the $7 billion bailout from the International Monetary Fund (IMF).

Federal Minister for Finance Muhammad Aurangzeb held virtual meetings with executives from Dubai Islamic Bank (DIB) and Mashreq Bank to discuss the potential investment opportunities in the country.

“Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, had a virtual meeting with Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, to discuss Pakistan’s economic trajectory and explore potential avenues for increased investment in the country,” Finance Divison said in a statement on X.

Earlier on August 19, the Finance Minister also had a similar virtual interaction with Ahmed Abdelaal, President and GCEO of Mashreq Bank to discuss the economic outlook and explore investment opportunities in Pakistan.

During interaction with the Group CEO of Dubai Islamic Bank, federal minister Aurangzeb provided an in-depth overview of Pakistan’s current economic scenario, emphasizing the progress in stabilizing the economy and fostering a conducive environment for business and investment.

DIB CEO Chilwan underscored that Pakistan remained a strategically important market for Dubai Islamic Bank. He reiterated the bank’s interest in playing a more significant role in the country’s financial growth, particularly in Islamic banking, infrastructure, and SME development.

Both DIB and Mashreq Bank expressed strong interest in increasing their financial involvement in Pakistan particularly in sectors such as infrastructure, energy, technology, and Islamic banking.

It is pertinent to mention that Pakistan has pitched about $20bn in foreign borrowing for the current FY budget, besides another $3bn rollover from the UAE that was reported separately for the balance of payments.

Of the $20bn estimate, about $4bn will be specifically arranged through foreign commercial borrowing during the current fiscal year and an additional $1bn in international bonds. With this much borrowing, Pakistan’s reserves were estimated to grow to about $19-20bn by the end of the current fiscal year.

Digital Desk