ISLAMABAD:
In a rare financial milestone, Pakistan has repaid loans worth Rs2,600 billion ahead of schedule, a move officials say reflects the government’s push for fiscal discipline.
Finance Advisor Khurram Shahzad revealed on Monday that the Ministry of Finance returned Rs1,633 billion to the State Bank within just 59 days including Rs500 billion on June 30 and another Rs1,133 billion on August 29. He added that a separate commercial market loan of Rs1,000 billion was also settled before its maturity.
Calling the achievement “historic,” Shahzad credited the government’s economic policies for strengthening financial stability and boosting investor confidence.
In another development, the World Bank has approved a $20 billion concessional loan for Pakistan under a ten-year Country Partnership Framework. The loan, offered at just 2% interest with a 10-year tenor, will support key development projects. An additional $20 billion package for the private sector channeled through the IFC is also expected, potentially taking the total financial support to $40 billion.
Economists say the early repayments, coupled with fresh inflows from the World Bank, could ease pressure on Pakistan’s external account and send a positive signal to international markets.
