Pakistan Secures $1 Billion Loan Amid Economic Reforms

Pakistan has finalized terms for a $1 billion loan from two Middle Eastern banks at a 6%-7% interest rate as part of its financial support strategy. The country's Finance Minister Muhammad Aurangzeb has detailed optimism for gaining a credit rating upgrade and reforming state-owned enterprises.

Pakistan has finalized an agreement to secure a $1 billion loan from two Middle Eastern banks at an interest rate of 6%-7%, according to Finance Minister Muhammad Aurangzeb. This development is a key part of the country's strategy to bolster its finances amid continuous efforts to seek additional financial support.

The short-term loans, a strategic move shared by Aurangzeb, highlight Pakistan's efforts to reinforce its fiscal resources. As the country looks to upgrade its credit ratings, discussions with the rating agencies are being actively pursued, with a potential upgrade targeted before June.

Amid ongoing financial reforms, Pakistan aims to enhance its economic stability by engaging in IMF programs and revamping state enterprises, such as Pakistan International Airlines, following the European Union's lift of a ban on the national carrier. The government is hopeful about securing further IMF funding under the Resilience and Sustainability Trust for climate-related initiatives.

(With inputs from agencies.)