Pakistan is currently negotiating with Middle Eastern banks to secure approximately $4 billion in loans needed to meet external financial obligations for the current fiscal year. This is part of the $7 billion Extended Fund Facility (EFF) awaiting approval from the International Monetary Fund (IMF) executive board.
Finance Minister Muhammad Aurangzeb, along with his team—including Minister of State for Finance, Revenue and Power Ali Pervaiz Malik, Finance Secretary Imdadullah Bosal, and Additional Secretary Sara Najeeb—held a virtual meeting with Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank.
On Wednesday, a similar meeting took place with Mashreq Bank President and GCEO Ahmed Abdelaal. These meetings aimed to “discuss the economic outlook and explore investment opportunities in Pakistan.”
The finance minister has repeatedly stated that commercial borrowing from the Middle East, which had slowed down about two years ago due to adverse credit ratings, will soon resume.
Pakistan’s budget for the current fiscal year includes approximately $20 billion in foreign borrowing, alongside an additional $3 billion rollover from the UAE for the balance of payments. With this level of borrowing, Pakistan’s reserves are expected to reach around $19-20 billion by the end of the fiscal year.
Out of the $20 billion, about $4 billion is projected to come from foreign commercial borrowing, with another $1 billion from international bonds.
During the interaction with Dr. Chilwan, Mr. Aurangzeb provided a comprehensive overview of Pakistan’s economic situation, highlighting progress in stabilizing the economy and creating a favorable business and investment environment. He also informed the DIB chairman about key initiatives such as broadening the tax base, improving the ease of doing business, the FBR’s digitalization efforts, and ongoing reforms and restructuring in state-owned enterprises (SOEs) and privatization.
Dr. Chilwan emphasized Pakistan’s strategic importance to Dubai Islamic Bank and reiterated the bank’s interest in contributing to the country’s financial growth, particularly in Islamic banking, infrastructure, and SME development.
The finance minister invited Dubai Islamic Bank to increase its investments in Pakistan, reaffirming the government’s commitment to maintaining a stable macroeconomic environment and facilitating foreign investment. The discussion highlighted the importance of strengthening economic ties between Pakistan and DIB, reflecting both parties’ commitment to sustainable economic development and deepening financial relations between Pakistan and the UAE.
In another statement, Mashreq Bank President Ahmed Abdelaal expressed his appreciation for the Pakistani government’s policies aimed at boosting investor confidence and creating a business-friendly environment. He also expressed interest in deepening Mashreq Bank’s involvement in Pakistan’s financial sector and contributing to the country’s economic growth.
Abdelaal emphasized that Pakistan is one of the most strategic markets for investment opportunities and discussed potential investment areas such as infrastructure, energy, technology, agriculture, and SMEs, aiming to enhance collaboration between Pakistan and the UAE in remittances, trade, finance, and Islamic banking.
