Pakistan government takes another huge loan from European Commercial Bank
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ISLAMABAD:
Despite the claims by the federal government about the booming economy and rising foreign exchange reserves the government has resorted to another huge loan from the foreign bank.
Pakistan has obtained $700 million loan from a European commercial bank for 10 years in a bid to take pressure off its foreign currency reserves, increasing its borrowings to around $9 billion in the past almost one year.The fresh $700 million loan has been obtained at an interest rate of 4.47%, which is significantly lower than the return the country paid in the past on borrowings through Sukuk and Eurobonds.
The cost is also lower than what Pakistan paid on the $1 billion raised through a relatively cheaper mode of Islamic financing – Sukuk – in September last year.
