Pakistan Seeks $4 Billion from Banks by 2026

Pakistan aims to raise up to $4 billion from Middle Eastern commercial banks by the next fiscal year to address external financing gaps, according to State Bank of Pakistan Governor Jameel Ahmad. He revealed that the country is also in the advanced stages of securing an additional $2 billion needed for the International Monetary Fund's (IMF) approval of a $7 billion bailout program. This agreement, established in July, is pending approval from the IMF's executive board and required financing assurances from bilateral partners. Ahmad noted that recent interest rate cuts have effectively lowered inflation, which was reported at 11.1% in July, down from over 30% earlier in 2023. Furthermore, the central bank is set to review its monetary policy on September 12, with a focus on both price stability and growth. Pakistan's financing needs may be lower than initially projected, as external requirements are declining.