ISLAMABAD (National Times) Pakistan has requested a loan of $1.75 billion from the Islamic Trade Finance Corporation (ITFC), the Islamic Development Bank (IDB) and the Standard Chartered Bank.

Sources revealed on Thursday that loan had been sought for commodity and commercial purposes. A $400 million loan has been sought from ITFC for commodity purchase, they added.

According to sources, the IDB has been requested grant of $350 million for project financing, while $1 billion will be sought from the Standard Chartered for infrastructure development and other purposes.

They said long-term loans could be obtained at an interest rate of about 5pc. Moreover, loans would be taken from commercial banks at higher rates for loan approval from the IMF (International Monetary Fund), they continued.
The Ministry of Finance sources said efforts are underway for getting oil from Saudi Arabia on deferred payment arrangement. As agreement of purchase of oil from Saudi Arabia is stalled, the finance ministry is trying to make arrangements from four sources to fill the financing gap, they concluded.
Meanwhile, Pakistan has not received any deadline for external financing approval from the International Monetary Fund (IMF) Executive Board.

The Ministry of Finance and the international donor mission recently held a virtual meeting to hash out the external financing details.

Sources said the Federal Board of Revenue (FBR) officials also joined the meeting and explained the revenue shortfall. Ministry officials apprised the IMF mission of the measures related to external financing.

They also discussed rolling over of loans and securing new financing arrangements from friendly countries.

The ministry officials gave a timeline for rolling over loans from friendly countries until next week.

Sources said the IMF had demanded that the $12 billion loan rollover must be completed before seeking approval from its Executive Board. The IMF mission has also stressed the need to make up the revenue shortfall this month.