KARACHI: The government has secured a $300 million loan from United Bank Ltd. (UBL) in response to the increasing demand for funding to fulfill responsibilities related to the repayment of external debt.
Through its branches in the UAE and Bahrain, UBL organized and financed a $300 million short-term loan for the Pakistani government, according to a news release released on Monday.
The government finds it difficult to roll over the debt from China and other nations, even as it attempts to secure additional funding for debt servicing during the current fiscal year.
With foreign assets of over $2.4 billion, UBL is one of the biggest Pakistani banks with a global reach.
According to the bank, the transaction demonstrates UBL’s capacity to provide customers with dependable and easy-to-use solutions both domestically and internationally. UBL has a proven track record of carrying out intricate and valuable transactions with success.
Even with increased exports and remittances, the nation will require at least $14 billion to settle its external debt in 2024–2025. By the conclusion of FY25, the State Bank wants to have $13 billion in reserves. The SBP recorded an outflow of $228 million to $11.853 billion during the week ending December 26th, following steady growth over the previous two months.
In order to maintain its reserves at the level specified by the IMF as part of the requirements for the $7 billion Extended Fund Facility, the SBP has been purchasing dollars from the domestic market.
“In keeping with commitments to the IMF, this transaction supports Pakistan’s external financing needs,” UBL stated.
Agribusiness collaboration
In an effort to empower farmers by providing them with better access to financial and agricultural support services, HBL Microfinance Bank (HBL MfB) and HBL Zarai Services Ltd (HZSL), Pakistan’s first agriculture-specialized extension services provider, launched a strategic alliance on Monday.
This partnership demonstrates a common goal of improving rural livelihoods and promoting sustainable agricultural growth.
Through the cooperation, HBL MfB will open a location at HBL Zarai’s Deras, delivering microfinance products geared to smallholder farmers’ agricultural needs, thanks to its vast experience in providing customized financial solutions.
