Pakistan is engaged in advanced negotiations with Middle Eastern banks to secure $4 billion in loans, aiming to fulfill its external financing needs for the current fiscal year. This initiative is part of a broader strategy to unlock a $7 billion bailout package from the International Monetary Fund (IMF).
Finance Minister Muhammad Aurangzeb has conducted virtual meetings with executives from Dubai Islamic Bank (DIB) and Mashreq Bank to explore investment opportunities in Pakistan. Aurangzeb highlighted the country’s efforts toward economic stabilization and the anticipated revival of commercial borrowing from the Middle East, which had been hindered by downgraded credit ratings.
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The national budget for the current fiscal year includes $20 billion in foreign borrowing, with $4 billion earmarked for commercial loans and $1 billion through international bonds. Both DIB and Mashreq Bank have shown strong interest in expanding their financial involvement in Pakistan, particularly in sectors such as infrastructure, energy, technology, and Islamic banking.
