In an attempt to meet the requirements imposed by the International Monetary Fund (IMF) for loan approval, the government of Pakistan has formally requested a $1.75 billion loan from commercial banks at higher interest rates.
According to sources close to the Finance Ministry, representatives are negotiating with three large banks to obtain the loan, with the prospect of long-term funding at an interest rate of about 5%.
The government is seeking loans from several commercial banks, according to sources in the Finance Ministry, in order to maintain a stable financial position and meet IMF requirements. Although the interest rates on these loans are comparatively higher, they are necessary to keep the nation’s liquidity stable.
Pakistan is in talks with Saudi Arabia on an additional loan in addition to the commercial bank loans.
