UBL facilitates $300 million in foreign financing for Pakistan through UAE branch

The United Bank Limited (UBL) announced this week it facilitated $300 million in foreign financing for the Pakistani government through its branch in the United Arab Emirates (UAE).

The bank said the initiative would help shape Pakistan’s economy in a more vibrant way.

“UBL UAE is proud to facilitate $300 million in foreign financing for the Government of Pakistan— a testament to our commitment toward setting new standards in the banking industry,” the bank said in a statement on its social media accounts.

“This venture marks another milestone in our journey to shape a stronger, more vibrant economy.”

Pakistan has struggled to meet its external debt repayment obligations, often resulting in its regional allies rolling over loans worth billions of dollars. The cash-strapped nation has been struggling to ward off an economic crisis that has drained its revenue, pushed inflation to record levels, and weakened its currency significantly over the past two years.

Pakistan secured a fresh 37-month $7 billion loan from the International Monetary Fund (IMF) this year after it narrowly avoided a sovereign default on its payment obligations in 2023.

Pakistan’s finance minister, however, has reiterated the country needs to move toward an export-oriented growth model supplemented by long-term financial reforms to ensure its progress is sustainable.