Finance Minister Muhammad Aurangzeb has said that the government has agreed terms for a $1 billion loan with two Middle Eastern banks at a six to seven per cent interest rate as Pakistan looks for more financing.
During an interview on the sidelines of the World Economic Forum annual meeting in Davos, Aurangzeb said “with two institutions we have now gone forward in signing up the term sheet — one bilateral and one for trade (finance)”.
Aurangzeb added that the loans were short-term, or up to one year. Aurangzeb added that Pakistan was aiming to discuss with ratings agencies a move towards a single B rating, hoping to see an upgrade in the coming months. “Ideally I would like to think that some action in this direction can take place before our fiscal year is over, which is this June,” he said.
Finance Minister Muhammad Aurangzeb has invited global stakeholders to invest in Pakistan's agriculture, IT, renewable energy and pharma sectors. Earlier, in an article published on the WEF website, he highlighted the transformative journey embarked upon by Pakistan in recent years towards economic stabilization and growth. He said Pakistan's economy is on a path to recovery. Inflation has dropped to 4.1 percent and foreign exchange reserves now provide over two months of import coverage.
Muhammad Aurangzeb further said exports have risen by 7.1 percent, while the IT sector grew by an impressive 28 percent year-on-year. The article said Pakistan's global default risk has dropped by 93 percent, signaling renewed faith in the country's fiscal stability.
Highlighting Pakistan's potential as a lucrative investment hub, the Minister said local and foreign investors, including global giants like Aramco, BYD and Samsung, are contributing to this economic revival.
He said the current account has been in surplus for three consecutive months, and investor confidence is at a two-year high. He said foreign direct investment surged by 20 percent in the first half of the current fiscal year, reflecting renewed trust in Pakistan's economic trajectory.
The Minister said initiatives like the Roshan Digital Account have attracted over nine billion dollars in inflows, while remittances reached a record 35 billion dollars this year. He said Pakistan's equity market delivered an 87 percent return in dollar terms, underscoring strong investor sentiment.
Federal Minister for Finance and Revenue, Muhammad Aurangzeb, had an informal meeting with the Minister of Foreign Affairs of Tunisia, Mr. Mohamed Ali Nafti, on the sidelines of the World Economic Forum Annual Meeting. The brief interaction focused on fostering bilateral relations and exploring avenues of mutual interest between Pakistan and Tunisia, said a press release issued here on Tuesday.