ISLAMABAD: The United Bank Limited (UBL) this week announced it had facilitated $300 million in foreign financing for Pakistan’s government through its branch in the United Arab Emirates (UAE), saying that the initiative would help shape the country’s economy into a more vibrant one as Islamabad struggles to repay its external debt obligations. 

UBL is a banking company incorporated in Pakistan and one that is engaged in commercial banking and related services. It operates one of the largest branch networks in the country, augmented by its industry-leading digital banking services which have earned it local and international recognition.

“UBL UAE is proud to facilitate $300 million in foreign financing for the Government of Pakistan— a testament to our commitment toward setting new standards in the banking industry,” the bank said in a statement on its social media accounts on Monday. 

“This venture marks another milestone in our journey to shape a stronger, more vibrant economy.”

Pakistan has struggled to meet its external debt repayment obligations, often resulting in its regional allies rolling over loans worth billions of dollars. The cash-strapped nation has been struggling to ward off an economic crisis that has drained its revenue, pushed inflation to record levels, and weakened its currency significantly over the past two years. 

Pakistan secured a fresh 37-month $7 billion loan from the International Monetary Fund (IMF) this year after it narrowly avoided a sovereign default on its payment obligations in 2023. Pakistan’s finance minister, however, has reiterated the country needs to move toward an export-oriented growth model supplemented by long-term financial reforms to ensure its progress is sustainable.