Pakistan Seeks Financial Lifeline from Middle Eastern Banks

Pakistan is negotiating with Middle Eastern banks to secure $4 billion in loans to fulfill its financial obligations for the fiscal year. This initiative follows a $7 billion Extended Fund Facility pending IMF approval. Finance Minister Muhammad Aurangzeb held virtual meetings with CEOs of Dubai Islamic Bank and Mashreq Bank to discuss the economic outlook and investment opportunities.

Struggling to meet its external financial obligations, Pakistan is negotiating with Middle Eastern banks for approximately USD 4 billion in loans, as reported by Dawn newspaper on Friday. This initiative is part of a USD 7 billion Extended Fund Facility, whose approval by the IMF is pending.

Finance Minister Muhammad Aurangzeb, along with his team, conducted virtual meetings with Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, and Ahmed Abdelaal, President and Group CEO of Mashreq Bank. These meetings aimed at discussing Pakistan's economic outlook and prospecting investment opportunities.

Pakistan's fiscal strategy includes pitching about USD 20 billion in foreign borrowing for the current year, with USD 3 billion earmarked for a rollover from the UAE. The country's reserves are expected to reach around USD 19-20 billion by the fiscal year-end.

(With inputs from agencies.)