New Delhi: Neighboring country Pakistan is trying its best to repay its debt. The situation is that more loans are being sought to repay the debt. Pakistan has now sought a loan of $4 billion (about Rs. 34,000 crore) from Middle Eastern banks. The new debt will plunge Pakistan, which is already cash-strapped, further into crisis. The loan Pakistan has sought from Middle Eastern banks is part of the $7 billion Expanded Fund Facility (EFF) that is currently awaiting approval from the International Monetary Fund (IMF). Pakistan has sought this loan to meet its financial obligations, according to a news report published in Pakistan’s Dawn newspaper. And met with Dr. Adnan Chalwan. Virtual meeting. A day earlier, on Wednesday, a similar discussion was held with Mashreq Bank Chairman and Group CEO Ahmed Abdulal. Both the meetings were held to discuss the economic outlook and investment in Pakistan. Pakistan has offered foreign loans of about 20 billion dollars in the current fiscal year budget. Apart from this, a rollover of $3 billion has also been made from the United Arab Emirates for balance of payments.
The IMF deferred the loan amount.
The IMF was going to give a loan of 7 billion dollars to Pakistan. However, this week the IMF postponed the approval of the EFF indefinitely due to certain reasons. Pakistan’s finance minister is optimistic that the IMF can approve the new EFF next month.
The IMF deferred the loan amount.
The IMF was going to give a loan of 7 billion dollars to Pakistan. However, this week the IMF postponed the approval of the EFF indefinitely due to certain reasons. Pakistan’s finance minister is optimistic that the IMF can approve the new EFF next month.
Foreign banks are demanding higher interest rates.
Pakistan has also increased partnerships with foreign commercial banks for borrowing. However, banks are not feeling comfortable in giving loans to Pakistan. In fact, Pakistan has been given a low rating by the international agency. Pakistan’s current credit rating is CCC+, which is quite low. In such a situation, these banks are reluctant to lend to Pakistan. However, these banks are demanding higher interest rates for lending.
