Pakistan Takes New Record Loan to Repay Outstanding Loans
اردو
ISLAMABAD: Pakistan has raised $3 billion from international investors through bonds to help repay a short-term loan from Saudi Arabia.
The government borrowed $3 billion in two parts:
- $1.75 billion for 5.5 years at 7.5% interest
- $1.25 billion for 10 years at 7.9% interest
This is Pakistan’s biggest single international bond sale. Investors ordered nearly $6 billion worth, showing strong demand. Finance Minister Muhammad Aurangzeb called it a positive sign of renewed confidence in Pakistan’s economy. He said it is part of a planned strategy to replace expensive short-term loans with longer-term ones and reduce the risk of having to repay large amounts at once.
The money will help repay a $3 billion loan from Saudi Arabia that is due next month (originally taken to repay the UAE). Interest rates are higher than in 2021 mainly because global interest rates (especially US Treasury rates) have risen a lot since then. Officials note that the new bonds still offer relatively competitive pricing given today’s market conditions.
The proceeds will support overall external financing needs and may also be used to replace other short-term debts. .. CN report, 07 Sep 2026
The financial planners of the country are wiser than the anecdotal ‘wise men of gotham’. Taking more loans to pay back previous loans can only happen in Pakistan. We can at the least learn from Sri Lanka which came out of the 2022 bankrupt status by immediately imposing ‘shock’ austerity-cutting down the perks and privilleges of all those enjoying on public money by 75 percent and carried out aggressive structural reforms. It is now back on it’s feet while while pakistan is slowly sinking into the insolvency quagmire with spiralling overhead expenditures of the government- probably highest in the world, per capita.