Islamabad, Sep 5: The Pakistan has applied for a total of $1.75 billion in loans from three key financial institutions namely the Islamic Trade Finance Corporation (ITFC), the Islamic Development Bank (IDB), and Standard Chartered Bank, top sources revealed to bloom Pakistan.
According to sources, these loans will support the construction of infrastructure and the acquisition of necessities like commodities. Of the total, $350 million has been requested from the IDB for project financing, and $400 million has been asked from the ITFC for the purchase of essential commodities.
A $1 billion loan has also been proposed to Standard Chartered Bank, mostly to finance infrastructure projects.
According to sources, these loans are anticipated to have an interest rate of about 5% and a lengthy payback time.
This borrowing is a component of a larger plan to fulfill vital funding obligations that the International Monetary Fund (IMF) established in order to initiate the new $7 billion loan program.
Sources further stated that the Finance Ministry has no problem approaching commercial banks for higher-interest loans.
Negotiations with Saudi Arabia to reopen an oil loan facility have been put on hold in the interim.
