ISLAMABAD: Pakistan plans to ask international lenders for billions of dollars in loans after the recent floods devastated much of the country and added to its economic woes, an international newspaper reported on Wednesday.
The floods that submerged one-third of the country during the monsoon season uprooted over 33 million people across Pakistan. They also washed away houses, crops, livestock and much of the public infrastructure in places like Sindh and Balochistan.
In an exclusive interview with the Financial Times, Prime Minister Shehbaz Sharif said there was “a very serious gap” between his country’s financial demands in the wake of the floods and what had been received from the international community.
“We are not asking for any kind of measure [such as] a rescheduling [of loans] or a moratorium,” he was quoted by the newspaper as saying. “We are asking for additional funds.”
The prime minister said the country needed “huge sums of money” for “mega undertakings” which included the rebuilding of public infrastructure.
According to the Financial Times, Pakistan’s external debt already stands at about $130 billion.
Sharif did not mention how much money his government was seeking from global lenders, though he repeated the $30 billion estimate of the damage caused by the floods.
“We are obviously concerned because if there is dissatisfaction leading to deeper political instability and we are not able to achieve our basic requirements and goals, this can obviously lead to serious problems,” he added. “I’m not saying it in terms of any kind of threat, but I’m saying there’s a real possibility.”
The United Nations recently urged its member states to provide humanitarian assistance of $816 million to Pakistan, though the Sharif administration said on Wednesday the country had suffered massive losses amounting to $40 billion according to the World Bank.
Pakistan wants billions of dollars in new loans after devastating floods – Financial Times
https://arab.news/8hm5u
Pakistan wants billions of dollars in new loans after devastating floods – Financial Times
- PM Sharif tells the international publication the money is needed for ‘mega undertakings’ such as rebuilding of public infrastructure
- The prime minister says failure to generate the required amount of money could further exacerbate political instability in Pakistan
Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport
Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport
- Pakistan is a cash-dominated market where a significant portion of transactions in the informal sector are made without any taxes, officials say
- The move comes amid Pakistan’s efforts to introduce a cashless model at airports under which only digital service providers can provide services
KARACHI: Aik, Pakistan’s first Islamic digital bank, has enabled fully digital payments at Islamabad International Airport to offer travelers and passengers secure, Shariah compliant digital transaction facility.
The development comes amid Pakistan’s efforts to introduce a cashless model at airports across the country, under which only digital service providers can provide services to customers.
Aik, a subsidiary of Bank Islami, said it has onboarded merchants across the Islamabad airport and integrated QR code deployments at key touchpoints to allow passengers and visitors to make secure, seamless, and Shariah-compliant digital transactions at all counters, retail outlets, and service points.
It said the implementation complies with the regulations and framework set by the State Bank of Pakistan (SBP) and is a working model for a large-scale adoption of cashless systems in public infrastructure.
“This deployment reflects our commitment to building practical digital infrastructure that improves everyday transactions,” Aik Chief Officer Ashfaque Ahmed said in a statement.
“By enabling a fully cashless environment at a major national gateway, we are supporting efficiency, transparency, and financial inclusion at scale. This is not only a project; it is a foundation for Pakistan’s cashless future.”
Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted in cash. Officials say many of these transactions are aimed at avoiding taxes.
In recent years, the SBP has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.
By digitizing Islamabad airport, aik said it continues to invest in secure and accessible financial solutions that “expand digital participation and support national economic modernization.”
