Pakistan is moving to arrange a $600 million loan ahead of its upcoming review with the International Monetary Fund (IMF), aiming to manage mounting external financing needs and meet looming debt obligations.
According to sources, the Ministry of Finance is in talks with a group of international banks led by Standard Chartered, along with participation from Chinese financial institutions. Negotiations are focused on finalizing the loan terms, with the expected interest rate likely to exceed 7 percent.
The planned borrowing is intended to cover commodity-related payments and help reduce strain on the country’s foreign exchange reserves. This step comes as Pakistan prepares to repay $1.2 billion in Eurobonds due in April 2026, adding urgency to efforts to strengthen its external finances.
The move also precedes an IMF delegation’s visit scheduled from February 25 to March 11 for the third review of Pakistan’s ongoing program. Government ministries have been directed to submit progress reports on reform measures as part of the review preparations.
Officials indicate that a successful outcome of the IMF talks could unlock over $1 billion in additional funding, along with approximately $200 million under the Resilience and Sustainability Facility.
Meanwhile, the economic team has briefed Prime Minister Shehbaz Sharif on discussions with global lenders and the broader financial outlook, as the government continues working to stabilize the country’s external sector and reinforce economic stability.
