No urgency to seek fresh loans, says Aurangzeb

Conceding almost a record five per cent interest rate on $7bn loan from the International Monetary Fund (IMF), the government said on Wednesday the external financing gap had been met for the current year, leaving no urgency to access international financial markets until Pakistan’s credit rating improved. Testifying before the Senate Standing Committee, Finance Minister Muhammad Aurangzeb said Pakistan would now tap international financial markets once the credit rating improved to B category as the external financing gap for the current year had been met. He said it was pointless to go for external commercial borrowing with a CCC rating. He said the government would contract foreign loans only when it was necessary and even borrowing from commercial banks would be made on ‘our own terms’.