{"id":11949,"date":"2024-12-21T03:59:19","date_gmt":"2024-12-21T03:59:19","guid":{"rendered":"https:\/\/gsrra.com\/?p=11949"},"modified":"2025-09-23T13:05:34","modified_gmt":"2025-09-23T13:05:34","slug":"pakistan-secures-300mn-loan-through-ubl-at-7-2-7-7-interest","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=11949","title":{"rendered":"Pakistan secures $300mn loan through UBL at 7.2%-7.7% interest"},"content":{"rendered":"\n

First non-Chinese financing in years arranged by UBL through Gulf-based lenders; an additional $100 million facility may follow<\/em><\/strong><\/p>\n\n\n\n

By<\/p>\n\n\n\n

 Monitoring Desk<\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Pakistan has acquired a $300 million commercial loan at interest rates ranging from 7.2% to 7.7%, to address its external financing requirements under the International Monetary Fund (IMF) programme, The Express Tribune <\/em>reported citing senior government sources. <\/p>\n\n\n\n

The loan includes $250 million at a rate of one-year Secured Overnight Financing Rate (SOFR) plus a 3% margin, equivalent to roughly 7.2%. The remaining $50 million was obtained at one-year SOFR plus a 3.5% margin, translating to 7.7%. Both portions are repayable within one year.<\/p>\n\n\n\n

The loan was secured from United Bank Limited (UBL), which arranged the facility through Gulf-based lenders. <\/p>\n\n\n\n

This marks the first foreign source-based loan outside China since fiscal year 2022, as Gulf and European banks had earlier withdrawn facilities due to Pakistan\u2019s deteriorating credit rating and financial challenges.<\/p>\n\n\n\n

This is the second foreign commercial loan acquired in three months. In September, the government obtained a $200 million loan from the Bank of China at an interest rate of approximately 8.5%. The finance ministry shared with the Senate Standing Committee on Finance that this loan was based on a three-month SOFR plus a 3.15% margin.<\/p>\n\n\n\n

Senior government officials confirmed that an additional $100 million facility might also be arranged through UBL. <\/p>\n\n\n\n

This development could pave the way for more foreign commercial financing, as international banks were previously hesitant to lend due to low ratings.<\/p>\n\n\n\n

Earlier this year, Pakistan negotiated a $600 million loan with Standard Chartered Bank at an interest rate of around 11% but later opted not to proceed with the facility.<\/p>\n\n\n\n

The IMF has identified a $2.5 billion external financing gap for the current fiscal year, which Pakistan is working to close through various measures. However, the government has yet to secure a $1.2 billion deferred oil payment facility from Saudi Arabia.<\/p>\n\n\n\n

Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.<\/p>\n\n\n\n

Reference Link:- https:\/\/profit.pakistantoday.com.pk\/2024\/12\/20\/pakistan-secures-300mn-loan-through-ubl-at-7-2-7-7-interest\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

First non-Chinese financing in years arranged by UBL through Gulf-based lenders; an additional $100 million facility may follow By  Monitoring Desk Pakistan has acquired a $300 million commercial loan at interest rates ranging from 7.2% to 7.7%, to address its external financing requirements under the International Monetary Fund (IMF) programme, The Express Tribune reported citing senior government […]<\/p>\n","protected":false},"author":1,"featured_media":11950,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[132,8522,8519,8520,8521,36,8517,8518,60],"class_list":["post-11949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sample-category","tag-economy","tag-gulf-based-lender","tag-loan","tag-loan-of-300mln","tag-non-chinese-finance","tag-pakistan","tag-pakistan-secures-300mn-loan-through-ubl-at-7-2-7-7-interest","tag-ubl","tag-geopolitics"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/11949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11949"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/11949\/revisions"}],"predecessor-version":[{"id":11951,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/11949\/revisions\/11951"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/media\/11950"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}