2024-08-24 18:30:29
New Delhi: Neighboring country Pakistan is spreading its hands here and there to repay its debt. The situation is that more loans are being sought to pay off the debt. Pakistan has now sought a loan of $4 billion (about Rs 34 thousand crores) from Middle East banks. The new loan will put Pakistan, which is already facing a cash crunch, in further trouble. The loan that Pakistan has sought from Middle East banks is part of the $7 billion Extended Fund Facility (EFF) currently pending approval of the World Monetary Fund (IMF). Pakistan has sought this loan to meet its financial obligations. According to a report published in Pakistan’s newspaper Dawn, Pakistan’s Finance Minister Mohammad Aurangzeb and his team held a virtual meeting with Dubai Islamic Bank’s Group CEO Dr. Adnan Chilwan on Thursday. A similar conversation was held with Mashreq Bank’s President and Group CEO Ahmed Abdelal a day earlier i.e. on Wednesday. Both the meetings were held to discuss the economic outlook and investment in Pakistan. Pakistan has offered foreign borrowing of about $20 billion in the budget for the current fiscal year. Apart from this, it has also rolled over $3 billion from the UAE for balance of payments.
Pakistan has surrendered before IMF, this deal of Shehbaz Sharif will break the back of Pakistani people
IMF deferred the loan amount
The IMF was going to give a loan of 7 billion dollars to Pakistan. However, this week the IMF postponed the approval of the EFF indefinitely for some reason. Pakistan’s Finance Minister hopes that the IMF can approve the new EFF next month.
Foreign banks are demanding more interest
Pakistan has also increased its partnership with foreign commercial banks to take loans. However, banks are not feeling comfortable giving loans to Pakistan. Actually, Pakistan has been given a low rating by the international agency. Pakistan’s current credit rating is CCC+, which is quite low. In such a situation, these banks are hesitant to give loans to Pakistan. However, these banks are demanding high interest for giving loans.