Pakistan seeks $4bn loan from Middle Eastern banks

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.