Islamabad, Aug 23: Pakistan is in advanced discussions to obtain $4 billion in loans from Middle Eastern banks to cover its external finance needs for the current fiscal year.
The foundation of this endeavor is the unlocking of the $7 billion International Monetary Fund (IMF) bailout.
To discuss investment potential in Pakistan, Finance Minister Muhammad Aurangzeb had virtual meetings with officials from Mashreq Bank and Dubai Islamic Bank (DIB).
Aurangzeb highlighted Pakistan’s attempts to stabilize its economy and the anticipated start of commercial borrowing from the Middle East, which had been put on hold because of lower credit ratings.
For the current fiscal year, Pakistan has allocated $20 billion for foreign borrowing, of which $4 billion is intended to be obtained through commercial loans and $1 billion through international bonds. Mashreq Bank and DIB both indicated a significant desire to expand their financial presence in Pakistan, especially in areas like Islamic banking, energy, technology, and infrastructure.
