Karachi, December 31st, 2024 – Pakistan has arranged a $300 million short-term loan from United Bank Ltd (UBL) to help meet external debt obligations.
Loan Arranged by UBL
UBL has financed a $300 million loan for Pakistan through its UAE and Bahrain branches, addressing urgent financing needs amid ongoing debt pressures.
| Loan Amount | Financing Source | Purpose |
|---|---|---|
| $300 Million | UBL (UAE & Bahrain) | Short-term financing for debt obligations |
Pakistan’s Debt Challenges
Despite higher remittances and exports, Pakistan faces a significant debt gap, needing at least $14 billion to cover external debt for 2024-25.
| External Debt Requirement | Target Reserves for FY25 |
|---|---|
| $14 Billion | $13 Billion |
SBP’s Reserve Struggles
The State Bank of Pakistan (SBP) reported a decrease in foreign reserves, dropping by $228 million to $11.853 billion as of December 26, 2024.
| Date | SBP Reserves | Change |
|---|---|---|
| Dec 26, 2024 | $11.853 Billion | -$228 Million |
UBL’s Role in IMF Commitments
UBL’s loan supports Pakistan’s external financing needs, in line with the country’s commitments to the IMF under the Extended Fund Facility.
| Commitment | Amount | Purpose |
|---|---|---|
| IMF Extended Fund Facility | $7 Billion | To stabilize foreign reserves and manage debt obligations |
HBL’s Agricultural Partnership
HBL Microfinance Bank and HBL Zarai Services Ltd have formed a partnership to provide financial support to farmers, promoting sustainable agriculture.
| Partners | Objective |
|---|---|
| HBL Microfinance Bank & HBL Zarai | Empower farmers with financial & agricultural services |
Conclusion: Key Financial Moves for Stability
UBL’s $300 million loan and HBL’s partnership are vital steps in securing Pakistan’s economic stability and supporting fiscal goals.
