Pak seeks $4 bn loan from West Asian banks to meet financial obligations

Cash-strapped Pakistan is in talks with banks in the Middle East to borrow approximately USD 4 billion to meet its external financial commitments for the current fiscal year, as part of the USD 7 billion Extended Fund Facility (EFF) currently pending for IMF's approval.

Finance Minister Muhammad Aurangzeb and his team had a virtual meeting with Dr Adnan Chilwan, Group CEO of Dubai Islamic Bank, on Thursday, the Dawn newspaper reported on Friday.

On Wednesday, a similar interaction was held with Mashreq Bank President and Group CEO Ahmed Abdelaal. Both meetings had been arranged to discuss the economic outlook and explore investment opportunities in Pakistan.

For the current fiscal year, Pakistan has pitched about USD 20 billion in foreign borrowing in the budget, besides another USD 3 billion rollover from the UAE that was reported separately for the balance of payments. With this much borrowing, Pakistan's reserves are estimated to grow to about USD 19-20 billion by the end of the