The Finance Ministry has applied for a total of $1.75 billion in loans from three key financial institutions namely the Islamic Trade Finance Corporation (ITFC), the Islamic Development Bank (IDB), and Standard Chartered Bank, top sources revealed to ProPakistani.
Sources said these loans will help cover essential commodity purchases and infrastructure development. Of the total, $400 million is being sought from the ITFC for the purchase of key commodities, while $350 million has been requested from the IDB for project financing.
Also, Standard Chartered Bank has been approached for a $1 billion loan, primarily to fund infrastructure projects.
Sources said these loans are expected to come with a long-term repayment period and an interest rate of around 5 percent. This borrowing is part of a broader strategy to meet critical financing commitments set by the International Monetary Fund (IMF) for unlocking the new $7 billion loan program. Sources added that the Finance Ministry doesn’t mind seeking higher-interest loans from commercial banks.
Meanwhile, efforts are underway to negotiate a stalled oil loan facility with Saudi Arabia.