Pakistan Seeks $4.9 Billion Loan, Raising Concerns Over Misuse
Faced with significant external financing needs, the Pakistani government plans to borrow $4.9 billion from international banks. This strategy involves securing $2.64 billion in short-term loans and $2.27 billion in long-term loans, with negotiations underway with several major international banks, including the ICBC, Standard Chartered Bank, and Dubai Islamic Bank. The additional funding aims to bolster Pakistan’s foreign exchange reserves, currently around $14 billion, to meet the IMF’s target of $13.9 billion by June. Despite these efforts, Pakistan’s economic growth for 2024-25 fell short of its target, reaching only 2.68 percent.
John Q. Hosedrinker