Pakistan Secures $1 Billion Loan from Middle Eastern Banks

Pakistan has finalized a $1 billion loan deal with two Middle Eastern banks, aiming to improve its financial standing. Signed by Finance Minister Muhammad Aurangzeb, the loans are short-term agreements with interest rates of 6%-7%. This follows a $7 billion IMF bailout secured in September 2024.

Pakistan has successfully negotiated terms for a $1 billion loan with two Middle Eastern banks. According to Finance Minister Muhammad Aurangzeb, the loans come with an interest rate ranging from 6% to 7%.

The agreement includes one bilateral and one trade finance component, as stated by Aurangzeb during an interview at the World Economic Forum in Davos. The loans have a short-term maturity period, extending up to one year.

This financial maneuver comes as Pakistan seeks to strengthen its economic position after securing a $7 billion bailout from the International Monetary Fund (IMF) in September 2024. The first review of this IMF extension is scheduled for late February, with Aurangzeb expressing optimism about the outcome.

(With inputs from agencies.)