Pakistan is preparing to secure a $600 million loan ahead of the upcoming review by the International Monetary Fund, as authorities look to manage external financing pressures and upcoming debt repayments.
Sources told ProPakistani that discussions are underway between the Ministry of Finance and a consortium of international banks led by Standard Chartered, with participation from Chinese lenders, to finalize the terms of the facility at an interest rate exceeding 7 percent.
The financing is expected to be used for commodity-related payments, as the government seeks to ease pressure on foreign exchange reserves ahead of a major repayment obligation. Pakistan is due to repay $1.2 billion in Eurobonds in April 2026.
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The development comes just before an IMF mission scheduled from February 25 to March 11, during which the third review of Pakistan’s program will be conducted. Officials have begun preparations, with ministries asked to submit implementation reports.
Sources said that successful negotiations with the IMF could unlock more than $1 billion in funding, along with an additional $200 million under the Resilience and Sustainability Facility.
The country’s economic team has also briefed Prime Minister Shehbaz Sharif on ongoing engagements with international lenders and the broader economic outlook, as Pakistan continues efforts to stabilize its external position.