2 min read
KARACHI: The government of Pakistan has secured a $300 million loan from United Bank Ltd (UBL) to meet the growing financial needs required to repay external debt.
A news statement from Monday stated that UBL’s branches in the United Arab Emirates and Bahrain had arranged and funded a $300 million short-term loan for the Pakistani government.
The government is having trouble transferring debt from nations like China while it tries to secure additional funding to pay down its existing debt this fiscal year.
With more than $2.4 billion in foreign assets, UBL is among the most prominent Pakistani banks with a global reach.
The contract demonstrates UBL’s capacity to provide clients with dependable and smooth solutions, both in Pakistan and abroad, according to the bank. When it comes to handling complicated and high-value transactions, UBL has a proven record of success.
The country would require $14 billion to settle its foreign debt in 2024 and 25, even though both exports and remittances have increased. The State Bank aims to have $13 billion in reserves by the end of FY25. Following two months of steady growth, the SBP recorded a $228 million outflow, bringing the total to $11.853 billion, for the week ending December 26.
As part of the terms of the $7 billion Extended Fund Facility, the IMF stipulated that the SBP’s reserves must meet a specific level, therefore the bank has started purchasing dollars on the domestic market.
According to UBL, “this transaction supports Pakistan’s external financing needs, in line with commitments to the IMF.”
