In response to Pakistan’s urgent need to meet external debt repayment demands, United Bank Limited (UBL) has secured a $300 million short-term loan for the government. This financing was arranged through UBL’s international branches in the UAE and Bahrain, showcasing the bank’s global operational capacity.
The move aligns with the government’s broader efforts to manage its debt servicing challenges, including difficulties in rolling over loans from China and other creditors. With international assets exceeding $2.4 billion, UBL holds one of the most extensive global networks among Pakistani banks, consistently delivering high-value financial solutions.
UBL emphasized its ability to execute complex transactions, with this deal supporting Pakistan’s external financing obligations as stipulated by the International Monetary Fund (IMF). “This transaction addresses critical financing needs in line with IMF commitments,” the bank stated.
Despite recent growth in remittances and exports, Pakistan requires $14 billion for external debt payments during the 2024-25 fiscal year. State Bank of Pakistan (SBP) reserves recently fell to $11.853 billion, despite efforts to bolster reserves through domestic dollar purchases under IMF conditions.
In a separate development, HBL Microfinance Bank (HBL MfB) and HBL Zarai Services Ltd (HZSL) announced a strategic partnership to improve financial and agricultural services for smallholder farmers. This collaboration aims to foster sustainable rural development and enhance farmers’ access to tailored financial products and agricultural expertise.
Under the agreement, HBL MfB will extend microfinance services at HBL Zarai’s Deras, creating a streamlined support system to address the specific needs of Pakistan’s farming community.
