The Pakistan government is preparing to secure $4.9 billion in external commercial financing for the upcoming FY2025-26. 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.

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.

Credit: Independent News Pakistan (INP)