In an effort to secure funding to close the financing gap required for an IMF loan, Pakistan has formally requested a commercial foreign loan of $800 million to $1 billion from Standard Chartered Bank (SCB). This step is crucial for obtaining approval from the International Monetary Fund (IMF) executive board.
Senior officials confirmed the request, stating that SCB has agreed in principle to resume the credit line for Pakistan. Additionally, the country has reached out to Saudi Arabia for a $1.2 billion Saudi Oil Facility (SOF). Upon confirmation of this support, Pakistan plans to submit a Letter of Intent (LoI) to the IMF for its $7 billion Extended Fund Facility (EFF) program.
Despite a staff-level agreement reached on July 12, 2024, the IMF board has not yet included Pakistan in its calendar up to September 13, 2024. The delay underscores the importance of securing additional financial support.
During a virtual meeting, Finance Minister Muhammad Aurangzeb discussed investment opportunities with Sunil Kaushal, Global Head of Corporate & Investment Banking at SCB. The meeting focused on infrastructure development, digital banking, and sustainable finance, with SCB reaffirming its long-term commitment to Pakistan.
Kaushal expressed optimism about Pakistan’s economic potential, emphasizing the bank’s dedication to supporting the country’s economic growth. Both parties agreed to explore specific investment projects, with the finance minister pledging full government support.
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