Pakistan Seeks $1.75 Billion Loan from ITFC, IDB, and Standard Chartered Bank

Pakistan has formally requested a loan of $1.75 billion from three financial institutions, including the Islamic Trade Finance Corporation (ITFC), the Islamic Development Bank (IDB), and Standard Chartered Bank, sources revealed on Thursday. The loan request is intended for both commodity purchases and infrastructure development.

According to sources, Pakistan has requested $400 million from ITFC to finance the purchase of commodities, while $350 million is being sought from the IDB for project financing. The largest portion of the loan, $1 billion, is requested from Standard Chartered Bank for infrastructure projects and other commercial purposes.

The sources noted that long-term loans could be obtained at an interest rate of approximately 5%. However, loans taken from commercial banks are expected to come with higher interest rates, possibly to fulfill conditions set by the International Monetary Fund (IMF) for loan approval.

Meanwhile, the Ministry of Finance is also working to secure oil supplies from Saudi Arabia under a deferred payment arrangement. Due to delays in finalizing the oil purchase agreement, the ministry is exploring alternative financial sources to fill the gap.