📌 Key Highlights & Quick Takeaways:
- Pakistan rejected the offer of $490 million trade loan from International Trade Finance Corporation (ITFC), a subsidiary of Islamic Developm.
- According to finance ministry officials, the cost of borrowing was around 8 per cent, while the government had expected the facility to be a.
- According to official sources, the Debt Management Office of the Ministry of Finance took this decision last week. After rejecting the loan.
Pakistan rejected the offer of $490 million trade loan from International Trade Finance Corporation (ITFC), a subsidiary of Islamic Development Bank Group, due to high interest rates.
According to finance ministry officials, the cost of borrowing was around 8 per cent, while the government had expected the facility to be availed at an interest rate of around 6 per cent.
According to official sources, the Debt Management Office of the Ministry of Finance took this decision last week. After rejecting the loan offered for a period of one year, the Ministry of Finance has directed the Economic Development Division to explore the possibility of getting a new loan facility at a competitive rate from ITFC or any other source.
This development has come at a time when Pakistan's overall financial needs remain high. According to the annual borrowing plan of the Ministry of Finance for the financial year 2026-27, the total financial needs of the country are estimated to be 28 thousand 647 billion rupees, which is equal to about 20 percent of the Gross National Product (GDP).
According to the report, these requirements include the federal financial deficit of about 7 thousand billion rupees and the payment of the principal amount of domestic and foreign debts of more than 21 thousand billion rupees.
