Pakistan requests a loan of $1.75bn from ITFC, IDB, and Standard Chartered Bank

Pakistan has requested a loan of $1.75 billion from the Islamic Trade Finance Corporation (ITFC), the Islamic Development Bank (IDB), and Standard Chartered Bank (SCB).

According to the 24NewsHD TV channel, sources indicated that the loan is sought for commodity purchases and commercial purposes, with $400 million requested from ITFC specifically for commodity purchases.

Additionally, $350 million is requested from IDB for project financing, while $1 billion is sought from Standard Chartered for infrastructure development and other sources.

The loans from these commercial banks could be obtained at a long-term interest rate of approximately 5%. Higher interest rates may be applicable for approval from the IMF, with the Ministry of Finance officials actively engaging with these banks to secure the loans.

Finance Minister Muhammad Aurangzeb's statement:

Finance Minister Muhammad Aurangzeb stated that negotiations are underway with Saudi Arabia for a deferred oil payment facility. Speaking informally with journalists, the Finance Minister mentioned that discussions are also ongoing with Saudi Arabia on investment projects under mutual agreements.

The Finance Minister expressed optimism about concluding talks with the International Monetary Fund (IMF) on external financing soon, adding that discussions with the IMF Executive Board for the approval of the loan program are progressing well.

He noted that they are at an advanced stage for the IMF Executive Board's approval, which is expected to happen shortly. Minister Aurangzeb also highlighted that talks are not limited to friendly countries but also include commercial institutions for lending.

However, he refrained from providing a specific date for the IMF Executive Board's loan approval, although he expects the approval to come through within this month.