According to informed sources, Pakistan’s Ministry of Finance has formally approached three banks in the United Arab Emirates to request a $1 billion commercial loan. This move is part of the government’s broader effort to meet a key condition set by the International Monetary Fund (IMF), which requires Pakistan to boost its foreign exchange reserves.
Officials indicated that the government is working to finalize the loan arrangement by June 30, a deadline critical for ensuring compliance with the IMF’s Extended Fund Facility program. The funds will be directed toward enhancing the State Bank of Pakistan’s foreign exchange reserves.
Sources further revealed that the IMF has set a specific target for Pakistan to raise its reserves to at least $13.9 billion by the end of June 2025. Currently, the State Bank’s net reserves stand at approximately $14 billion—an amount sufficient to cover about three months of the country’s import requirements. Strengthening these reserves is seen as essential for maintaining financial stability and restoring investor confidence in the economy.
