ISLAMABAD: The Pakistan government is preparing to secure $4.9 billion in external commercial financing for the upcoming FY2025-26, ARY News reported on Tuesday, quoting well-placed sources.
As per details, Pakistan government’s plan includes obtaining $2.64 billion in short-term loans from commercial banks at expected annual rate of 7 to 8 per cent and without stringent conditions or performance targets.
In addition, $2.27 billion is proposed to be raised through long-term borrowing from commercial banks.
The Pakistan government is aiming to tap four prominent international commercial banks for this purpose.
Read more: IMF, Pakistan set key targets for budget 2025-26
Efforts are underway to secure $1.1 billion from the Industrial and Commercial Bank of China (ICBC), while proposals are also in place to obtain $500 million each from Standard Chartered Bank and Dubai Islamic Bank.
Furthermore, a commercial guarantee is expected to be secured for a $500 million loan from the Asian Development Bank (ADB) as part of the external financing strategy.
Sources further noted that the IMF has set a target for Pakistan to raise its foreign exchange reserves to $13.9 billion by the end of June.
The State Bank’s net reserves of $14 billion would be sufficient to cover three months of imports.
Read more: Pakistan seeks $1 billion commercial loan from UAE banks
