Pakistan hopeful of getting $350m loans from UAE banks

Pakistan is seeking loans totalling up to $350 million from commercial banks in the United Arab Emirates to meet its external financing needs. According to informed banking sources, Finance Minister Muhammad Aurangzeb has been in discussions with these banks to revive their loan portfolio with Pakistan, and the finalisation of the loan is expected to occur very soon. In the first three quarters of the current fiscal year, the government received about $504m from foreign lenders (mostly UAE-based), showing a minor recovery from commercial banks that had stayed away from financing Pakistan last year. The government has budgeted $3.8bn in financing from foreign banks for the current fiscal year, but the actual realisation has been sluggish in the first nine months.