Davos (TDI): Finance Minister Muhammad Aurangzeb said on Tuesday that Pakistan had reached an agreement for a loan of USD one billion with two Middle Eastern banks.
He revealed this during an exclusive interview with Reuters in Davos on the sidelines of the World Economic Forum annual meeting.
“With two institutions we have now gone forward in signing up the term sheet – one bilateral and one for trade (finance),” Aurangzeb told Reuters.
Read More: Aurangzeb Departs for Davos to Participate in WEF meeting
He added that the loan was acquired at a 6 to 7% interest rate, and none of the two loans will last more than one year.
The development comes as Pakistan looks to boost its finances after it secured a $7-billion bailout from the International Monetary Fund (IMF) in September 2024.
Read More: Aurangzeb Unveils Pakistan’s $200M Panda Bond Plan
The first review of the IMF deal is set for February 2025.
“We have the first formal review of the EFF coming through towards (the) end of February,” Aurangzeb said, adding that the government was prepared for the review.
