Since the IMF program, Pakistan has restarted commercial financing from international banks and entered into a syndicated loan of $1 billion for five years.
Islamabad is also arranging refinancing of a $1.3 billion loan from Chinese banks, and it is anticipated that the total amount of $2.3 billion will be raised by June 30, 2025.
Foreign exchange reserves of the State Bank of Pakistan will rise in the weeks to come with the assistance of borrowed dollar inflows.
The foreign exchange reserves could rise close to the $14 billion mark against $11.6 billion on June 6, 2025.
The two standalone commercial loan facility will benefit Pakistan in augmenting its foreign exchange reserves.
The Ministry of Finance announced on Wednesday that it had signed a $1 billion syndicated term finance facility, partially backed by a Policy Based Guarantee under the Asian Development Bank’s (ADB) “Improved Resource Mobilization & Utilization Reform” program.
The sources added that the ADB gave a guarantee of $500 million facilitating Islamabad to secure reasonable terms on basis of more than SOFR.
The facility is a milestone deal for Government of Pakistan that reflects strong confidence of regional top financiers.
This deal also opens doors for new collaboration of Government of Pakistan with Middle Eastern banks.
Earlier, Asian Development Bank (ADB) approved an $800 million package of funds for Pakistan to bolster the country’s foreign reserves, after a five-day delay in last week’s board meeting.
It includes a $300 million budget support loan and $500 million of guarantees to ease Islamabad’s access to foreign commercial loans, senior government officials said on Monday.
The ADB Board of Governors had initially sat to consider the loan request on May 28, according to the Ministry of Economic Affairs officials.
