Finance Minister Announces $1 Billion Loan Agreement with Two Middle Eastern Banks
Pakistan Web Desk: Finance Minister Muhammad Aurangzeb has confirmed that Pakistan has finalized the terms for securing a $1 billion loan from two leading banks in the Middle East.
In an exclusive interview with an international news agency at the World Economic Forum in Davos, the minister revealed that the loan agreements are geared toward meeting commercial needs and will have a short-term duration, ranging up to one year.
Aurangzeb elaborated that the loans will be provided at an interest rate of 6-7%, a favorable rate in the current economic climate.
The minister expressed optimism about Pakistan’s economic trajectory, stating that the country’s credit rating is expected to improve in the coming months. He further mentioned that the formal review of Pakistan’s Extended Fund Facility (EFF) by the International Monetary Fund (IMF) is scheduled for the end of February, and Pakistan is well-positioned for a positive outcome.
Looking ahead, Aurangzeb shared that discussions with the IMF under the Resilience and Sustainability Trust are expected to materialize within the next 6 to 9 months, unlocking an additional $1 billion in financial support.
The finance minister also touched on the government’s plans for the privatization of Pakistan International Airlines (PIA). He assured that significant progress will be seen in the next 5 to 6 months, pointing out that the resumption of flights to Europe has already enhanced the airline’s business credibility.
This announcement comes as a crucial step in bolstering Pakistan’s financial stability and regaining investor confidence. With strategic measures and international support, the country aims to steer its economy toward growth and sustainability.
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