Karachi: United Bank Limited (UBL) has facilitated a USD 300 million short-term loan for the government of Pakistan to support external debt repayments. The arrangement was made through UBL’s branches in the UAE and Bahrain, as detailed in a press release issued on December 31.
According to the details, the loan comes at a critical time as Pakistan seeks to address its fiscal challenges, including rolling over debt from China and other countries. Despite an increase in remittances and exports, the country requires at least USD 14 billion to meet its external debt obligations during the fiscal year 2024-25, alongside a target of USD 13 billion in foreign reserves for the State Bank of Pakistan (SBP) by the end of FY25.
UBL, which boasts international assets exceeding USD 2.4 billion, highlighted the transaction as evidence of its capacity to execute complex, high-value financial solutions. The bank underscored its ability to offer seamless and reliable services domestically and internationally. This financial arrangement aligns with commitments made to the International Monetary Fund (IMF) under the USD 7 billion Extended Fund Facility.
The SBP has also been purchasing dollars from the domestic market to maintain reserve levels required by the IMF. As of December 26, SBP reserves stood at USD 11.853 billion following an outflow of USD 228 million.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
