Pakistan says it has agreed $1 billion loan with two Middle Eastern banks

In this file photo, taken on July 19, 2024, Pakistan Finance Minister Muhammad Aurangzeb speaks during an interview with Reuters at his office in Islamabad, Pakistan. (REUTERS/File)
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Updated 21 January 2025
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Pakistan says it has agreed $1 billion loan with two Middle Eastern banks

  • Loans are short-term with 6 to 7 percent interest rate, says Muhammad Aurangzeb
  • Pakistan aims to boost finances after securing $7 billion IMF bailout in September

DAVOS, Switzerland: Pakistan has agreed terms for a $1 billion loan with two Middle Eastern banks at a 6%-7% interest rate, its Finance Minister Muhammad Aurangzeb told Reuters on Tuesday, as the South Asian country looks for more financing.

“With two institutions we have now gone forward in signing up the term sheet — one bilateral and one for trade (finance),” Aurangzeb said during an interview on the sidelines of the World Economic Forum annual meeting in Davos.

The loans were short-term — or up to one year, Aurangzeb added.

Pakistan aims to boost its finances after securing a $7 billion International Monetary Fund (IMF) bailout in September 2024, with the first review set for late February.

“We have the first formal review of the EFF coming through toward (the) end of February,” Aurangzeb said. “I do think we are in good stead for that review.”

IMF extended fund facilities (EFFs) provide financial assistance to countries facing serious medium-term balance of payments problems resulting from structural weaknesses that require time to address.


Pakistan, Oman navies discuss maritime security, ink agreement to share shipping data

Updated 24 December 2025
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Pakistan, Oman navies discuss maritime security, ink agreement to share shipping data

  • Visiting Oman royal navy commander calls on Pakistan Naval Chief Admiral Naveed Ashraf in Islamabad
  • White shipping agreement refers to exchange of prior information on movement of commercial ships

ISLAMABAD: The naval commanders of Pakistan and Oman discussed regional maritime security on Wednesday and signed an agreement to share shipping information with each other, the Pakistan Navy said in a statement.

The press release followed a meeting between Pakistan Naval Chief Admiral Naveed Ashraf and the visiting Oman Royal Navy Commander Rear Admiral Saif Bin Nasser Bin Mohsin Al Rahbi at Naval Headquarters in Islamabad.

Both navies maintain close professional relations, reflected in expert-level staff talks, joint training, bilateral exercises, and participation in multilateral exercises between the Pakistan Navy and the Royal Navy of Oman.

“During the meeting, matters of mutual interest, regional maritime security and bilateral naval cooperation were discussed,” the Pakistan Navy said.

The MoU was signed by both sides at a ceremony at the Naval Headquarters, the navy’s media wing confirmed. 

“The MoU is aimed at establishing of guidelines and procedures for information sharing in order to enhance mutual awareness of white shipping,” the Pakistan Navy said in a statement. 

White shipping agreement refers to the exchange of prior information on the movement and identity of commercial non-military merchant vessels.

Information regarding the identity of vessels helps countries tackle potential threats from sea routes. This particularly helps in the development of a proper regional maritime domain awareness

The statement said Al Rahbi lauded Pakistan Navy’s professionalism and acknowledged its ongoing contributions to maritime security and regional stability.

Pakistan and Oman share geographical proximity and common maritime boundaries. Bilateral relations between the two brotherly countries span a wide range of areas, including economic cooperation, people-to-people contacts and strong defense ties.

In December, a Royal Navy flotilla from Oman visited Karachi to take part in the annual bilateral Thamar Al Tayyib (TAT) 2025 exercise. 

Pakistan Navy and the Royal Navy of Oman have been conducting the TAT series of exercises regularly since 1980.